The 50/50 joint venture is expected to produce 150,000 multi-purpose vehicles and engines a year and will be called Dongfeng Renault Automotive Co Ltd.

Renault is already present on the imported vehicles market in China but said that partnering with a heavyweight of the Chinese automotive industry will allow it ‘ deploy its ambitious strategy’ for China.

In a statement, the two firms said: ‘Dongfeng will use this opportunity to further consolidate global resources and achieve rapid development in the automotive market. Renault will use this opportunity to strengthen its scale and depth in the Chinese market and extend its industrial footprint. With the support of both Dongfeng Motor and the Renault-Nissan Alliance, stakeholders of both sides will push forward close cooperation in every sector, notably research and development, purchasing, manufacturing and marketing.’

China's National Development and Reform Commission granted approval for the new venture.

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