Since the beginning of this year, the French car has fallen into the trough of the auto market, and Dongfeng Renault has become the only legal brand with sales growth.
According to data released by the China Association of Automobile Manufacturers, from January to August 2017, a total of 6,388,700 Chinese brand passenger cars were sold, up 4.76% year-on-year; German, Japanese, American, Korean and French passenger cars were respectively It sold 3,302,200 units, 2,656,300 units, 1,018,800 units, 570,700 units and 245,800 units, accounting for 20.46%, 17.94%, 12.17%, 3.90% and 1.66% of the total sales of passenger vehicles, respectively. The market share of legal cars has once again narrowed, but Dongfeng Renault’s cumulative sales volume from January to August reached 50,100 units, completing 83% of the annual sales target of 60,000 units.
Renault’s growth in China is mainly attributed to the sales of two domestic SUVs (Kreika and Koleo). Although Dongfeng Renault has grown rapidly in China, Renault's development in China is still relatively slow compared to other markets around the world. Taking the comparison with the European market as an example, in 2016, Renault's new car sales in the world was 3.182 million, of which the sales volume in the European market was 1,496,400, and the sales in the Chinese market was only 35,300. It is worth noting that Dongfeng Renault is one of the latest joint venture car companies in China. In 2013, Renault established a joint venture company in China. According to Renault's domestic schedule set by Renault-Nissan President Carlos Ghosn, by 2018, 20% of Renault's global sales will be realized in China, but for Dongfeng Renault, it is not easy to accomplish such a goal.
“As a latecomer, Dongfeng Renault missed the golden period of rapid development in the previous ten years.†Chen Hao, former vice president of marketing and sales of Dongfeng Renault, said that the current Chinese auto market has become saturated, for all new entrants. The challenges are unprecedented, and the space left for them is getting narrower and narrower. For Dongfeng Renault, on the one hand, because the brand is relatively small, the recognition of legal cars in the hearts of Chinese consumers is not high; on the other hand, the channel construction of Dongfeng Renault is relatively weak.
"We still face two major challenges. First, consumers' awareness of our brand awareness and brand awareness, to make Chinese consumers more aware of Renault; second, about the expansion of dealer networks, there are currently 170, at the end of this year. The plan is extended to 200. Our dealer network mainly covers municipalities, provincial capitals, prefecture-level cities and a small number of county-level cities. In addition, in order to ensure that dealers have sufficient profit margin, we have certain control over dealer network density. Weng Yunzhong, executive vice president of Dongfeng Renault, told reporters.
At present, Dongfeng Renault has two domestic models, Correga and Koleo. As an example, the localization process was accelerated and more products were introduced. On September 21, the test runway of the Dongfeng Renault Wuhan Plant Technology Center was officially opened, which also marked the official completion of the first phase of the Dongfeng Renault Technology Center.
“The completion of the first phase of the Technology Center marks that Dongfeng Renault has a strong local R&D capability to achieve a high degree of localization. Dongfeng Renault’s pre-development work focuses on the construction of factories and teams, as well as Koleo and Correga. The localization of the model. Our medium-term plan will have a longer-term plan, this is a plan to look into 2022, but the specific information I can not disclose, please look forward to it." Dongfeng Renault President Fran The reporter said that after the test runway is commissioned, each of the domestically produced models will be verified here thousands of times before the market is put on the market, before they can be finalized and transferred to mass production.
At present, Dongfeng Renault's car production has also been officially approved by the Hubei Provincial Development and Reform Commission. In the future, relying on the endorsement of the Renault-Nissan-Mitsubishi Alliance to introduce sedan models in line with the Chinese market. In addition, in the future, Renault will launch its own brand of electric vehicles in China, and will introduce Renault new energy vehicles, hybrid models and the world's leading autonomous driving and electric vehicle technology.
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