Reported by pulsestacks on April 24th, after a five-year hiatus, the F1 Chinese Grand Prix returned to Shanghai International Circuit on April 21st. The BWT Alpine F1 team under the Renault Group made a splendid debut in China, with French F1 drivers Esteban Ocon and Pierre Gasly both successfully completing the race.
According to a post on the official Weibo account of Renault China, during the day's race, several top executives from the Chinese automotive industry, including Li Shufu, Chairman of Geely Holding Group, and Yang Qing, Chairman of Dongfeng Motor Corporation, were seen at the maintenance area (Paddock) of the BWT Alpine F1 Team under the Renault Group. They engaged in in-depth discussions and took photos with Luca de Meo, CEO of the Renault Group, and Su Weiming, CEO of Renault China.
(Left) Luca de Meo, CEO of Renault Group, (Right) Li Shufu, Chairman of Geely Holding Group
(Left) Yang Qing, Chairman of Dongfeng Motor Corporation Limited (Right) Luca de Meo, CEO of Renault Group
What major moves will Renault make in the Chinese market?
In 2023, Renault Group achieved a revenue of 52.4 billion euros and a net profit of 2.3 billion euros, showing a significant year-on-year growth. Since the beginning of this year, Renault Group's stock price has surged by nearly 40%, reaching a new all-time high, surpassing its ally Nissan Motor in market value, demonstrating a strong upward trend.
This success can be attributed to Renault Group's introduction of the new strategic plan "Renaulution" in January 2021, aiming to shift the strategic focus from pursuing sales volume to emphasizing value creation. Through three stages, Renault Group aims to reshape its global competitiveness and move towards the next generation of automotive companies.
In less than two years, Renault Group has achieved remarkable financial results, allowing it to advance into the third stage of its strategy, the "Revolution" transformation phase, ahead of schedule in November 2022.
In the process of advancing its new strategy, Renault Group plays a crucial role in China. The group is establishing a new "ecosystem partnership" by combining Renault's strengths with China's new energy industry, developing innovative mobility solutions for the Chinese and global markets. This collaboration significantly accelerates Renault Group's strategic implementation. The new partnership is set to unlock greater value, fostering mutual benefits among all ecosystem partners.
Renault China CEO, Su Weiming, stated, "Amid challenges facing traditional supply chain relationships based on procurement, there is an urgent need to establish new ecosystems. Within this new system, the roles between OEMs, OEMs, and supply chain partners will shift from mere supply relationships to partnerships. This new ecosystem will drive innovation in the new energy vehicle industry, enabling rapid iteration and exponential growth, paving the way towards 're-globalization'."
In August 2021, Renault and Geely signed a memorandum of understanding to establish an innovative partnership, sharing resources and technology, with a focus on China and South Korea as key markets. In November 2021, the two parties further solidified their collaboration by signing a framework agreement to jointly create a leading global powertrain technology company. This collaboration aims to research, manufacture, and supply advanced hybrid powertrains and efficient fuel powertrains globally, producing over 5 million engine and gearbox sets annually, serving more than 130 countries and regions.
The new generation Dacia Spring under the Renault Group
Dongfeng has been a long-standing partner of Renault, and the two jointly established the EGT New Energy Automobile Company in Shiyan, Hubei, creating the best-selling budget electric car in the European market - the Dacia Spring. From December 2020 to 2023, over 200,000 Dacia Spring electric vehicles will be exported from China to Europe. This collaboration leverages the strengths of both Chinese and foreign companies, utilizing China's electric vehicle industry and supply chain advantages, as well as Renault's brand and European channels, to rapidly penetrate the European market and maximize efficiency.
Continuing to deepen its presence in the Chinese market, Renault remains confident in China.
Since the end of the epidemic, Renault's focus on China has increased further.
In October 2023, Luca de Meo, CEO of the Renault Group, led a visit to China, meeting with partners such as Dongfeng, Geely, and China Jin, seeking possibilities for deeper cooperation in the future. The focus is on enhancing overall vehicle R&D capabilities while exploring win-win opportunities for cooperation with China's new energy industry ecosystem.
During the Geneva Motor Show at the end of February, Renault China CEO Wei Ming Su stated in an interview, "Despite the current adjustment phase in the Chinese electric vehicle market, Renault remains very attentive to the Chinese market and actively promotes new concepts of partnerships, focusing on supply chain innovation and business model transformation."
In mid-March, Renault Group CEO Luca de Meo published an article titled "A Letter to Europe," emphasizing, "It is necessary to establish partnerships with Chinese companies. Renault cannot miss the opportunity to collaborate with the ecosystem, including battery super factories, top engineers, and raw material refining capabilities."
It is evident that Renault places great importance on the Chinese market. While many car manufacturers have been downsizing since last year, Renault Group continues to increase its investment in personnel and assets in China. At the same time, Renault has been making frequent moves in China recently, hinting at some significant initiatives in the works.
