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 Tuesday. Dongfeng will stop Renault brand-related activities, the companies said.
Renault's joint venture with Dongfeng in Wuhan builds the Renault Captur, Kadjar and Koleos crossovers as well as powertrains.
Renault said it will continue to provide aftersales service for 300,000 customers through Renault dealers and through its alliance with Nissan.
Renault and Dongfeng will continue to cooperate with Nissan on engines and components supply to Dongfeng and license diesel engines to Dongfeng. Renault and Dongfeng will cooperate on intelligent connected vehicles.
Dongfeng Motor operates joint ventures in Wuhan with PSA Group and Honda.
Renault returned to China in 2016, a market it had previously left to Nissan, when it opened a factory in Wuhan with Dongfeng Motor.
Former CEO Carlos Ghosn had targeted annual sales of up to 800,000 vehicles. 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 China deliveries dipped just 1.1 percent to 1.55 million vehicles last year.