This February 1st, Renault announced proudly that Dongfeng Renault’s Wuhan plant, its joint venture in China, has started production and the very first model that comes off this production line is Kadjar, which has already made its debut during Guangzhou Auto Show and expected to go on sales next month. Besides, this plant will also churn out Renault’s second domestic SUV and Fluence hybrid. It’s said that this plant’s yearly production could reach 150,000 units and ramp up to 300,000 units in the future.

 

Carlos Ghosn, Renault-Nissan’s CEO, expected a minimum 1 million increment in China’s auto market, even under the background of its slowing down economic and he hoped Renault could contribute its share to this increment.

 

To be noted, Renault’s journey in China has not been easy, even with its trendy domestic and SUV strategies, limited by its less influential brand power and related policy constriction. In order to compete in a relatively weak Chinese market, this latecomer has to increase its brand awareness and influence.

 

Renault said it will undertake a series of promotion campaigns for its Kadjar this year through celebrity endorsement, powerful publicity and multi-dimensional marketing. Meanwhile, Renault will also promote its brand culture by combining online digital display and offline multimedia experience. Besides, this carmaker has also host several air exhibitions in Beijing and Wuhan, featuring Renault, since last December.

 

During last Shanghai Auto Show, Dongfeng Renault said the company will increase the number of its dealer to 150 by the end of 2015, covering all levels of areas from metropolis to tier-6 cities while the current number of its dealers is 125, according to Dongfeng Renault, falling short from its original target.

 

But on the other hand, it is the dealers’ stable sales network and operating quality, rather than quantity, that matters. Jerome Stoll, vice executive president of Renault, said Renault will further complete its high quality dealers’ network.

 

Besides, the very limited number of models is another challenge facing Renault. Industrial experts believed it will be difficult for the majority of Renault dealers to profit with only 2 models as Kadjar and an upcoming SUV.

 

According to Renault’s plan, this carmaker will increase its market share to 3% in China, and in a bid to achieve this target, Dongfeng Renault will complete its product lines covering SUVs, sedans and EVs.