Renault has secured Chinese government approval for a joint venture with Dongfeng Motor, giving the French group its first manufacturing foothold in the world’s largest car market by units sold.
The approval by the National Development and Reform Commission marks the culmination of almost a decade of negotiations and comes as Dongfeng is separately engaged with Renault’s French rival, Peugeot, over a potential global alliance.
In a statement to the Hong Kong stock exchange, China’s second-biggest manufacturer said the two groups would produce 150,000 vehicles a year. Dongfeng also hinted that its ambitions for the plant extended beyond China, noting that its aim was to create a “globally competitive” 50-50 joint venture that will also be allowed to export Renault-brand vehicles.