Emmanuel Macron arrives this Wednesday morning in China for an official visit. About fifty companies support the President of the Republic. The majority of the CAC 40 made the trip, but two names were missing. Neither Renault nor Stellantis are part of the trip. The two automakers have almost abandoned Chinese territory.
A few months ago, Carlos Tavares, true to form, did not mince his words: “We don’t need factories in China,” he explained to a few journalists. Last October, Stellantis announced the closure of its joint venture with the Chinese GAC. Together, the two companies produced Jeeps. The 14-brand group is also reviewing its partnership with Dongfeng, with which it still produces Peugeots and Citroëns on Chinese soil. Today, Stellantis weighs more than 0.5% market share in the country.
The same music at Renault
At Renault, we hear the same little music. The manufacturer was one of the last in the sector to establish itself on the territory and today, it only keeps one toe. It no longer produces, through a joint venture with Nissan and Dongfeng, that Dacia Spring. Cars for the European market. Renault has never managed to establish itself in the country anyway.
“It’s very difficult to explain why French automakers have never managed to break into China,” concedes Arnaud Aymé, partner at SIA Partners. The transport specialist, however, advances a hypothesis: the positioning of Renault and Stellantis. “They have chosen to tackle the Chinese market with generalist models, neither low cost nor premium. They have not been able to differentiate themselves from other manufacturers operating in China, such as Volkswagen, for example, which has before its Audi and Porsche brands,” he explains.
A complicated equation for all foreign manufacturers
Still, today, the equation is complicated for all foreign manufacturers. Very strong local competition, price war, everyone is struggling. The figures given by the Chinese Association of Automobile Manufacturers are instructive. Two years ago, foreign brands accounted for 60% of passenger car sales in China. Last December, their share was reduced to 43%. “We may return to China one day, but today it’s far from being a priority” we slip at Renault before concluding: “China is really too much of a headache!” .
