Renault form JV with JMCG to enter China Electric vehicle market
- Published | 05 August 2019
The French automobile manufacturer can take a five hundredth stake in JMEV and establish it as a venture between the 2 corporations which will propel the automobile industry
Global: France's Renault will invest $145
million in a unit of China's Jiangling Motors Corporation Group (JMCG) that
will allow it to expand its electric vehicle manufacturing footprint in the
world's largest auto market.
The French carmaker will take a 50% stake in JMEV, an
electric car maker launched by JMCG in 2015, and establish it as a joint
venture between the two companies, Renault said in a statement. This
partnership in electric vehicle business with JMCG will support the growth plan
in China and EV capabilities. JMEV currently makes affordable EV sedans and
sport-utility vehicles and has an initial production capacity is 150,000
vehicles a year,
According to BlueWeave Consulting, the
electric vehicle market is witnessing significant growth rate in coming years
owing to increasing pollution level by fuel vehicles. Government supportive
regulatory framework regarding vehicular emission control is driving the demand
for the electric vehicle market. Technological advancements in the automobile
industry are forcing the manufacturer to invest in the sector. Oil importing
countries to ensure energy security is moving forward to the renewables. This
will also help them to reduce their energy fuel bills and dependence on foreign
oil countries. An electric vehicle is likely to have a lesser Centre of gravity
that creates them less likely to roll over. It also has a lower threat of fire
explosions and durability which make them safer in an accident. Moreover, with
technological advancement, Electric Vehicles have become smarter and have
digital connectivity with smartphones. Both expense and maintenance have gone
down due to Technological progressions. The large scale manufacturing of
batteries and accessible expense incentives have additionally cut down the
cost, therefore, making it significantly more financially savvy.
According to BlueWeave
consulting’s report, titled “Global Electric Vehicle (EV) Charging Station Market by Product Type (AC EV charging station, & DC EV chargingstation), by AC EV Charging Station (Level 1 & Level 2), by DC EV Charging Station (CHAdeMO, Combiner charging station & Others), By Installation Type(Residential, & Commercial), by Supplier Type ( Private charging Station& OE charging station) by Region (North America, Europe, Asia Pacific,Middle East & Africa and Latin America); Size and Forecast, 2018-2025”
Global Electric Commercial Vehicles market is expected to
grow at a CAGR over 13.0% during the forecast period in terms of
value. The market is expected to reach over USD 149,316 Million by 2024. due to
population expansion coupled with the growing industrial sector in developing
economies of the Asia Pacific and Latin America. Rising transportation
infrastructural spending owing to strong economic growth is anticipated to
remain a key driving factor for industry growth over the forecast
period. Increasing the incorporation of telematics & communication
capabilities in electrical commercial vehicles is anticipated to boost the
market growth. Growing food & beverage industry is another key factor
driving industry growth over forthcoming years owing to increasing food trucks
and refrigerated vehicles demand.
U.S. Electric Commercial Vehicles market is expected to
grow at a CAGR of over 11% during the forecast period in terms of value. U.S.
electrical commercial vehicle market is expected to witness owing to the factor
that the government has enforced stringent rules and regulations for vehicular
emission control. Rising transportation infrastructural spending owing to
strong economic growth is anticipated to remain a key driving factor for
industry growth over the forecast period. The electric vehicles are becoming
increasingly cheaper in the U.S. which is anticipated to boost the market
growth. The change of lifestyle in the U.S. which is increasingly shifting
towards the eco-friendly environment is another key factor driving
industry growth over forthcoming years.
The global electric vehicle (EV) charging
station market is expected to grow over a CAGR of 29% during 2018-2025 in terms
of value. The government supporting and introducing new initiatives to drive
the growth of EV and EV charging station industry is driving the growth of the
electric vehicle (EV) charging station market. Besides, the price of fuel is
constantly increasing which is urging the people to look for better and another
energy-efficient alternative. Oil price will increase over the forecast period
which will accelerate the market demand for electric vehicles and EVs charging
stations. These factors are constantly accelerating the growth of the
electric vehicle (EV) charging station market.
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