Groupe Renault and China’s Brilliance have confirmed a deal on a joint venture to manufacture and sell LCVs in China under the Jinbei, Renault and Huasong brands.

Groupe Renault, Brilliance form joint venture to manufacture LCVs in China in three segments with three bands

Announced earlier this year, the plans will see the brands produce models aimed at meeting local needs and covering the MPV, medium van and heavy van segments – electric drivetrains are also on the cards. The initial focus will be on rejuvenating the Jinbei brand before starting to manufacture Renault LCVs in China by 2020. The plan is to sell 150,000 vehicles a year by 2022 – according to the firms the Chinese LCV market currently sells around three million units a year.

The new JV will be known as Renault-Brilliance-Jinbei Automotive and will have manufacturing operations in the Dadong District of Shenyang. Renault will purchase a 49% equity interest in Shenyang Brilliance JinBei Automobile Co (SBJ), which is being restructured into a joint venture company owned by Brilliance China (51%) and Groupe Renault (49%).

The JV will draw upon Brilliance’s existing dealer network of 220 and manufacturing capacity along with Renault’s expertise in new technologies, core engineering capability and business management skills.

“Brilliance and Groupe Renault are joining hands to build a world-class model for the development of LCVs. It will change the map of the Chinese and even global LCV market. Both companies will build the joint venture into a world-renowned leader in three areas— commercial vehicles, new energy commercial vehicles and customized commercial vehicles,” said Qi Yumin, chairman of Brilliance Automotive Group Holdings Company Limited.