eGT New Energy Automotive Co. to develop electric SUV.
Electric Vehicles (EVs) are all the rage these days, with major players and lesser known manufacturers all hopping on the zero-emission bandwagon. There have been some lofty predictions in the wake of all this hype, and yet one segment of the market has been notably neglected: SUVs.
Okay, there’s Tesla’s Model X, but how many people do you know that have one of those charging in their garage? It’s odd, because the demand for SUVs has apparently gone global, which is particularly significant in China, where SUVs could be a major driver of domestic car growth.
According to the China Association of Automobile Manufacturers (CAAM), China is the world’s largest battery electric vehicle (BEV) market. In 2016, 256,879 BEVs were sold in China, up 121 percent from the previous year. In the first seven months of 2017, production of BEVs reached 223,000 units and sales 204,000 units, representing an increase of 37.8 percent and 33.6 percent respectively.
That’s why the Renault-Nissan Alliance and Dongfeng Motor Group Co., Ltd. recently announced a new joint venture to co-develop and sell EVs in China. The new joint venture, eGT New Energy Automotive Co., Ltd. (eGT), will design a new EV on an A-segment SUV platform of the Renault-Nissan Alliance.
“This project is the result of a joint effort to develop electric vehicles for the Chinese market, by the ‘Golden Triangle’ formed by Dongfeng, Renault and Nissan, with an innovative business model,” said Zhu Yanfeng, Chairman of Dongfeng. “We expect to meet the transformation trend of the market in China; where cars are becoming light, electric, intelligent, interconnected and shared. This is also testimony of a deepened and strengthened strategic cooperation between the three parties.”
Renault, Dongfeng and Nissan (China) Investment Co., Ltd. have signed an agreement to set up the new joint venture, where Renault will hold 25 percent of eGT, Nissan will hold 25 percent and Dongfeng the remaining 50 percent.
The newly formed eGT will be based in the City of Shiyan, Hubei Province in central China. The electric vehicle will be produced at the Dongfeng plant of Shiyan, which has a production and sales capacity of 120,000 vehicles a year.
Start of production for the new EVs is forecast for 2019.
For more information, visit the websites for Dongfeng and Renault-Nissan.