Renault deepens pact with Alibaba in China sales push

By BLOOMBERG

BEIJING • Renault SA is deepening a partnership with Alibaba Group Holding Ltd to boost sales in China, a market the French carmaker is counting on as the biggest growth pillar in the coming years.

As part of Renault’s push, Chinese consumers will be able to buy the company’s cars online through Alibaba’s Tmall service, Francois Provost, head of the automaker’s Asia-Pacific business, said in an interview in Shanghai yesterday.

Renault said it targets a fivefold increase in China sales in the next five years. Renault sees China as a market of strategic importance and a top priority in the company’s mid-term plan.

The company has a target to sell 550,000 vehicles in China as part of a goal to increase revenue globally 40% by 2022.

“We need to develop partnerships with companies like Alibaba,’’ Provost said. “We are sure it helps a lot.’’

Renault said it will develop nine new models for local production with a team of 600 engineers in China, three of them pure electric vehicles.

As part of the Alibaba pact, Renault will instal connectivity software developed by the e-commerce giant in its Koleos and Kadjar SUVs in China starting this year.

The Renault-Nissan-Mitsubishi alliance signed a pact with China’s leading ride-hailing operator DiDi Chuxing last month to explore car-sharing programme in the country.

Before Renault, Ford Motor Co teamed up with Alibaba as part of an efforts to revive growth momentum in China.