The automotive industry in China is a dynamic landscape, with Original Equipment Manufacturers (OEMs) playing a crucial role in shaping market trends and consumer preferences. Renault, a prominent player in this sector, has made significant strides in adapting its strategies to meet the unique demands of Chinese consumers. Understanding Renault’s OEM operations in China is essential for industry professionals and enthusiasts alike.
In this guide, readers will explore the intricacies of Renault’s OEM strategies, including production processes, partnerships, and market positioning. We will delve into the challenges and opportunities that Renault faces in the competitive Chinese market. By examining these elements, readers will gain valuable insights into how Renault navigates the complexities of operating in one of the world’s largest automotive markets.
Additionally, this guide will highlight the impact of local regulations, consumer behavior, and technological advancements on Renault’s OEM practices. Readers can expect to learn about innovative approaches Renault employs to enhance its product offerings and maintain a competitive edge. This comprehensive overview will equip readers with a deeper understanding of Renault’s role in China’s automotive landscape.
Major Milestones in Renault’s History in China
The story of Renault and China began in France in 1925 when Deng Xiaoping came to work at the Renault fitting shop in Boulogne Billancourt from 6 November to 12 December that year. Xiaoping would go on to be Secretary General of the Chinese Communist Party between 1956 and 1967 and President of the People’s Republic of China from 1978-1992. In the 1930s, Renault chassis (10 horsepower O.S.) were exported to the Middle Kingdom for bodywork, but it was really in the mid-1990s that Renault decided to establish fully-fledged commercial activities in China. This began with the manufacture of high-end minibuses between 1995 and 2003, with the focus moving to vehicle imports from 1999. Today, Renault is part of three long-standing joint ventures in the country.
1995-2003: First Industrial Location—High-End Minibuses
In November 1993, Renault entered the Chinese market by signing an industrial partnership agreement with China Sanjiang Space Group. The contract was for the assembly and manufacture of the Trafic Minibus. This resulted in the creation of the Sanjiang Renault Automotive Company (SRAC) joint venture in Xiaogan (Hubei Province, 80 km outside Wuhan).
At that point in time, the Chinese government decided that the country needed minibuses and that Renault’s partner would be Sanjiang. The objective for the joint venture was to manufacture high-end Trafic Minibus vehicles for VIP travel for public authorities and hotels, etc.
The reality was different in that the automotive market was driven by demand from private companies and individuals rather than solely by the public authorities. The product no longer corresponded to customer demand and Renault decided not to renew the SRAC product plan.
The joint venture was shelved in 2003 and the industrial facilities were put on ice, in other words, shut down but maintained. Renault manufactured 6,018 high-end Trafic Minibus vehicles at the Xiaogan plant over eight years.
From 1999 to 2004: Several False Starts for Joint Ventures
Renault’s interest in China is also illustrated by several attempted joint ventures that did not see the light of day, such as:
– 1999: A joint venture project with BAIC (Beijing Automotive Industry Corporation) involving Scénic
– 2002: A joint venture project with Brilliance involving Kangoo
– 2004: Renault signed an MOU (Memorandum of Understanding) with Dongfeng Automotive Investment Corporation to create a joint venture for the manufacture and marketing of passenger cars and commercial vehicles. However, the joint venture project was put on hold as the parties could not agree on the location of the manufacturing site.
1999: First Imports (CBU)
In 1999, Renault began importing passenger cars and developed a sales network. Renault was the first French manufacturer to import vehicles in China (PSA already manufactured vehicles locally but did not import vehicles).
From 1999 to 2006: Take-off of CBU Activity and a 2.6% Share of the CBU Market in 2006
- Renault went from selling 123 vehicles in 1999 to selling 3,364 in 2006, a figure boosted in particular by putting the Scénic, Mégane Classic, and Laguna on the market.
- In 2006, Renault had a 2.6% share of the imported vehicle market (the CBU market represented 126,000 vehicles and the total market was 4.2 million units).
- Five importers and their 30 dealers were responsible for sales activity (2007 figures).
2006 On: A More Difficult Situation
Renault’s sales declined in a difficult environment of unfavorable exchange rates, an aging range, increased local competition, and price wars. This led to two significant decisions:
– 16 January 2007: Create a 100% Renault-owned subsidiary in the interest of long-term operations and to strengthen the business. This subsidiary was eventually created in 2010.
– October 2007: Launch of approval procedures for the Koleos
These decisions helped Renault bounce back.
4 February 2010: Creation of RBAC (Renault Beijing Automotive Co.)
The subsidiary imported and distributed Renault vehicles. The five importers also became dealers.
Renault launched the « China Revival Plan » (2009-2011), which included:
– Putting the Koleos on the market
– A new « casual luxury » brand positioning
– A customer-oriented program—TOE (Total Ownership Experience)
– Reorganization of the network according to R-REDI (Renault Retail Environment Design Initiative) standards
– A new distribution system!
2011-2019: Creation of 4 Joint Ventures
- Following the joint venture project put on the back burner in 2004, fresh negotiations were underway between Renault and Dongfeng in June 2011.
- March 2012: A Memorandum of Understanding (MOU) was signed by Renault and Dongfeng.
- 16 December 2013: An agreement was signed formalizing the creation of the Dongfeng Renault Automotive Company (DRAC) joint venture and the construction of a plant in Wuhan.
– 1 July 2014: The DRAC joint venture took over managing the commercial activities of RBAC (Renault Beijing Automotive Co.), the 100% Renault-owned subsidiary.
– August 2017: A second joint venture was formed: eGT New Energy Automotive Co., Ltd. The objective was to accelerate the development of technologies for zero-emissions transport, a priority for Dongfeng Motor Group Co., Ltd. and Renault-Nissan-Mitsubishi. The joint venture relied on each partner’s key skills to manufacture competitively-priced electric vehicles.
– December 2017: Groupe Renault and Brilliance established a third joint venture: Renault-Brilliance-Jinbei Automotive Company. The joint venture manufactures and puts Jinbei, Renault, and Huasong brand LCVs on the market.
– July 17, 2019: Groupe Renault and Jiangling Motors Corporation Group (JMCG) announced the official establishment of their joint venture JMEV to further promote the development of the EV industry in China, following a first agreement on December 20, 2018. Through this joint venture, Groupe Renault will be able to expand its influence in China’s electric vehicle market, while JMCG will be able to integrate and leverage more resources, which will promote its rapid growth in the future.
Today: China is Groupe Renault’s Fourth-Largest Market
China is the world’s largest automotive market, with 28.1 million vehicles sold in 2018. In the same year, Groupe Renault sold 216,699 vehicles in China, an increase of 200.3% compared with 2017 (72,137 sales). China is now Groupe Renault’s fourth-largest market and one of the main pillars in the Drive the Future strategic plan, thanks to its strong potential for growth.
Renault Car Parts
Renault Car Parts Supplier Made In China
Renault parts are essential for maintaining the performance and safety of Renault vehicles. Suppliers like cnfastwin.com offer a wide range of Renault car parts, ensuring that customers can find the components they need for repairs and maintenance.
Technical Features of Renault Car Parts
| Feature | Description |
|---|---|
| Material Quality | High-quality materials for durability |
| Compatibility | Designed to fit various Renault models |
| Performance Standards | Meets or exceeds OEM specifications |
| Warranty | Typically comes with a warranty for assurance |
Types of Renault Car Parts
| Type | Description |
|---|---|
| Engine Components | Includes timing belts, oil pumps, and gaskets |
| Electrical Systems | Alternators, starters, and sensors |
| Suspension Parts | Shock absorbers, control arms, and springs |
| Body Parts | Bumpers, mirrors, and panels |
OEM/ODM China Renault Wheel Bolt
The OEM/ODM China Renault Wheel Bolt is a crucial component for vehicle safety and performance. These bolts are designed to meet high standards of quality and durability, ensuring that they can withstand the demands of everyday driving.
Advantages of Wheel Hub Bolts
- Complete Specifications: Customized on demand with full specifications.
- Preferred Material: High hardness and strong toughness.
- Smooth and Burr-Free: Ensures a smooth and bright surface.
- High Wear and Corrosion Resistance: No rust and oxidation resistance in humid environments.
Joint Ventures and Future Prospects
Renault’s collaboration with Geely, as reported on media.renaultgroup.com, marks a significant step towards developing next-generation hybrid and efficient powertrain solutions. This joint venture aims to leverage both companies’ strengths to meet the growing demand for sustainable automotive solutions.
Conclusion
Renault’s journey in China has been marked by significant milestones, from its initial foray into the market with high-end minibuses to its current status as a key player in the electric vehicle sector. The establishment of joint ventures and partnerships has allowed Renault to adapt to the evolving automotive landscape in China, making it a vital market for the company.
FAQs
1. What are the key milestones in Renault’s history in China?
Renault’s key milestones include the establishment of the SRAC joint venture, the launch of the Koleos, and the formation of multiple joint ventures with local partners.
2. Where can I find Renault car parts in China?
You can find Renault car parts at suppliers like cnfastwin.com, which offers a wide range of components for various Renault models.
3. What is the significance of the joint venture between Renault and Geely?
The joint venture aims to develop next-generation hybrid and efficient powertrain solutions, addressing the growing demand for sustainable automotive technologies.
4. How has Renault’s market share changed in China?
Renault’s market share has increased significantly, with sales rising from 123 vehicles in 1999 to over 216,000 vehicles in 2018.
5. What types of Renault car parts are available?
Renault car parts include engine components, electrical systems, suspension parts, and body parts, ensuring comprehensive coverage for vehicle maintenance and repairs.