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Renault picks 'significant' stake in Chinese electric-vehicle maker

Renault SA said Dec. 20 that it will take "a significant part" of Chinese electric-vehicle maker JMEV to boost its presence in the world's largest EV market, which sees nearly 50% of the global EV sales.

This agreement is subject to review by Chinese regulators, and the companies expect to close the transaction in 2019.

JMEV, a subsidiary of Chinese automaker Jiangling Motors Corp. Ltd., or JMCG, produced and sold 38,000 electric vehicles in 2017. It expects to sell 50,000 in 2018.

Renault said the electric-car joint venture with JMCG will help the French carmaker, which operates three joint ventures in China, complete its offering in the country and further support JMEV development.

"JMEV, the future joint venture with JMCG, is fully in line with Groupe Renault's strategy, aimed at establishing a solid position in the growing and high-potential market of EV in China," said François Provost, Renault's chairman of the Asia-Pacific region and senior vice president of China operations.