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WORLD

Renault opens first China plant

03.02.2016 [10:53]
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Renault opens first China plant

Baku, February 3, AZERTAC

French automaker Renault opened its first factory in China in a joint venture with Dongfeng Motor Corp. that has an initial production capacity of 150,000 cars per year, according to Xinhua.

The 7.76-billion-yuan (1.18 billion U.S. dollars) factory in Wuhan, capital of central China's Hubei Province, was approved by National Development and Reform Commission in December 2013.

The factory will mainly produce sports utility vehicles and its first product series, Kadjar, is expected to go on the market in March.

Renault's CEO Carlos Ghosn described the factory as a "big step" in developing the Renault brand in China and globally.

Ghosn said he was always optimistic about China's auto market, which, despite fluctuations, is still growing at 5 percent annually, meaning an increase of 1 million cars a year.

Dongfeng-Renault, though a latecomer, is expected to contribute greatly to China's auto market growth, he said.

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