Renault launches its first locally produced EV, the Renault K-ZE at Chengdu auto show

Renault Group has launched its first locally produced electric vehicle, the Renault K-ZE at an auto show in Chengdu.  The low-cost subcompact crossover targets urban commuters and has a range of 271 kilometers with a maximum speed of 105 km per hour. The K-ZE is the third product Renault has built with local partner Dongfeng.

The downturn in the auto sector has also impacted the sale of Renault and the company needs new products to push its sales. In August, deliveries of Dongfeng-Renault plunged 64 per cent year on year to 1,050. Through August 2019, their sales nosedived 73 per cent to 11,311.

To venture into China’s EV market, Renault formed a joint venture with local automaker Jiangling Motors Group in July in the east China city of Nanchang after acquiring 50% shares of Jiangling Motors’ EV subsidiary.

With this joint venture, Renault now has three vehicle production sites in China. The French automaker hasn’t disclosed production plans for the new venture.  

China is encouraging foreign automakers to strike similar deals with domestic producers in order to expand EV output in the country. Under the carbon credit program, electrified vehicles have to comprise about 10 per cent of annual sales of automakers in 2019. More global automakers are expected to team up with local carmakers in near future to accelerate their EV output.