PARIS -- Renault Group said it will stop selling Renault brand passenger cars in China and will focus on light commercial vehicles and electric vehicles in the market.
The automaker will transfer its shares in the Dongfeng Renault Automotive Company joint venture to Dongfeng Motor, Renault said in a news release on Tuesday. Dongfeng will stop its Renault brand-related activities, the release said.
Renault's joint venture with Dongfeng in Wuhan builds the Renault Captur, Kadjar and Koleos SUVs as well as powertrains.
Renault said it will continue to provide aftersales service for its 300,000 customers through Renault dealers and through its alliance with Nissan.
Renault, Nissan and Dongfeng will continue to cooperate on supplying engines and components for Dongfeng, and will license diesel engines to Dongfeng. Renault and Dongfeng will cooperate on intelligent connected vehicles.
Dongfeng has JVs in Wuhan with PSA Group and Honda.
In 2016 Renault returned to China, a market it had previously left to Nissan, when it opened a factory in Wuhan with Dongfeng. Its volume in China fell 17 percent to 179,571 in 2019, Renault said on Jan. 17 when it released global sales results for last year. Nissan is far bigger in the market. Its sales in China dipped just 1.1 percent to 1.55 million vehicles last year.