Renault seeks new opportunities in China despite economic slowdown
The French carmaker, Renault, says it is still optimistic about China's automobile market despite the country’s economic slowdown in recent weeks.
Renault’s Chief Executive Carlos Ghosn said in an interview on the sidelines of the IAA motor show in Frankfurt, Germany, on Tuesday that his company will go ahead with its plans for the Chinese market undeterred by the Asian country’s economic slowdown, AFP reported.
"Of all the European carmakers, the one that is least worried about what is happening in China is Renault," Ghosn added.
Renault’s chief executive also noted, "It is absolutely not a matter of concern. On the contrary, it's grounds for optimism, as there are plenty of opportunities for Renault, even if the market is not growing as fast as expected."
Global automobile industry had gotten used to seeing double-digit growth in China over the past decade, as a result of which the world’s second biggest economy had also turned into the world's biggest car market by volume.
China, however, is currently showing serious signs of slackening economic growth, with sales in Chinese market expected to grow by just 3.0 percent this year as the economy slows and stock markets tumble.
Against this backdrop, Renault says it is planning to build its first assembly plant in Wuhan, central China, where production of "crossovers" or urban 4x4s will begin as of next year.
Renault has not been a major player in China’s automobile market so far. The company sold around 30,000 cars in China last year. In comparison, Renault’s rival, PSA Peugeot Citroen, has been present in China for a long time, selling more than 730,000 vehicles a year while aiming to boost the figure to 800,000 this year.
"We have in front of us a market of more than 20 million" new car sales per year, Ghosn said, adding that there is no reason for Renault to shelve any of its plans.
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