Renault Announces “Drac Vision 2022” Strategy
By Kyle Lindsay
Tuesday, October 31, 2017 - 10:20
Dongfeng Renault Automotive Company (DRAC) today released its 2022 Vision at a media briefing in Wuhan.
According to the plan, Dongfeng Renault aims to sell 400,000 vehicles by 2022, based on nine local models, including three EVs, with a focus on the SUV segment. Meanwhile, its dealer network will expand to 400, and the company intends to deliver the best level of quality and customer satisfaction.
DRAC has achieved its initial goals over the past four years and is now ready to begin a new journey for the next five years – opening a new chapter as a mainstream joint venture by leveraging a full-value chain system.
At the media briefing, Carlos Ghosn, Chairman and CEO of Groupe Renault, said, “We recognise China as the world’s largest auto market and as a global trendsetter in the mobility of the future and that is why we have made it a strategic priority for growth in Groupe Renault’s new mid-term plan, ‘Drive the Future.’ Together with Dongfeng Group, we have the resources, scale and technologies to support DRAC’s sustainable growth in the Chinese market.”
Mr. Li Shaozhu, General Manager & Deputy Secretary of CPC of Dongfeng Motor, said: “Built on a strong understanding of market trends and a commitment to fulfilling customer hopes of enjoying a great life, the Vision 2022 plan reflects the shareholders’ confidence in DRAC, as well as the company’s responsibility to the shareholders, the dealers, all stakeholders and to society as a whole. We will fully leverage the synergies of our Golden Triangle among Dongfeng, Renault and Nissan to help DRAC begin a new chapter of innovative development.”
“DRAC 2022 Vision” sets the following targets by 2022:
- Increase annual sales to 400,000 units based on 9 localised products centred on SUVs, including 3 electric vehicles (EVs);
- Expand network to 400 dealers;
- Be recognised as the best in quality and customer satisfaction.
DRAC enters a new stage of development
DRAC’s next stage of development will focus on four pillars: brand and product development, sales and marketing enhancement, quality assurance and expansion of its Chinese footprint.
Brand and products. DRAC will expand its portfolio. By 2022, DRAC will sell nine local models in China, including three EVs. The company will stay focused on SUV expansion with improved internal combustion engine (ICE) options and new EV models. DRAC will focus its internal resources on unique features of the Renault Brand: seductive design, warm technology and assured journey. DRAC will actively apply Renault’s advanced technology in EV, autonomous driving and connectivity to satisfy tech-savvy Chinese consumers, particularly the younger generation.
Sales and Marketing capacity. A quality, sustainable dealer network is the foundation for DRAC’s robust development. Guided by a scientific and reasonable network expansion plan, DRAC will have more than 400 dealers by 2022. DRAC will offer investors a diverse network model to secure sustainable growth and encourage the best investors to develop multiple stores. Through this quality expansion of its network, Renault will be a brand that is truly visible, recognisable and accessible throughout China.
Quality. By 2022, DRAC aspires to become a market-leading joint venture brand in terms of quality and customer satisfaction. At the beginning of this year, Renault and DRAC respectively topped two lists published by Autohome – Overseas Brand (with Local Production) New Vehicle Quality and Overseas Brand (with Local Production) New Vehicle Assembly Plant Quality. In September, the market research agency, J.D. Power, published its 2017 China Vehicle Dependability Study (VDS), in which Renault ranked third and DRAC’s Kadjar ranked second among mid-sized SUVs in the China Initial Quality Study (IQS) – a strong endorsement for robust future sales growth. DRAC will continue to improve quality and provide Chinese customers with the best in sales, after-sales satisfaction and user experience. Meanwhile, DRAC will also apply the best worldwide standards of Renault for upstream development, industrialisation and production of cars and services.
Expanding our Chinese footprint. DRAC will keep being lean and agile. It will continue to develop products focused on the Chinese market and deliver 90% localisation. Meanwhile, DRAC will continue to improve its R&D capacity–including in EV and connectivity–tap the local talent pool, and build its Wuhan Plant into one of the best within the Renault-Nissan-Mitsubishi Alliance. In addition, the Golden Triangle partnership among Dongfeng Group, Nissan and Groupe Renault will further unleash DRAC’s potential with access to a full spectrum of cutting-edge technologies.
“Over the past 4 years, DRAC has become a full value chain company with an encouraging start thanks to the passion of our 2500 employees and the support of our dealers and suppliers. With our 2022 Vision, we will deliver sustainable growth based on the uniqueness of our Renault Brand with a focus on SUVs and battery electric vehicles,” said François Provost, SVP and Chairman of Asia-Pacific Operations for Groupe Renault and CEO of DRAC.
Successfully wrapping up the first phase of development. DRAC has quickly matured into a full-fledged joint venture covering the whole value chain, employing more than 2,500 talented people from different cultural backgrounds and nationalities. In less than two years, DRAC has built a brand new factory in Wuhan from the ground up and successfully localised two key models: Kadjar and All-New Koleos. This strategy is the spearhead of the company’s product offensive as it precisely targets the fastest growing SUV segments. Meanwhile, the DRAC principle of ‘One Team, One Voice, One Action’ has become a unique advantage that continues to unleash the company’s dynamism. By the end of October 2017, sales of the local Kadjar and All-New Koleos exceeded 60,000, achieving the annual target two months in advance.