Renault SA has agreed to exit its Chinese joint venture with Dongfeng Motor Group Co. Ltd. and will no longer sell Renault-branded gasoline-powered cars in the country, the French automaker said April 14.

Renault will sell its stake in Dongfeng Renault Automotive Co. Ltd. to its joint venture partner. Dongfeng will stop all Renault-branded activities.

As part of a new China strategy, Renault will shift its focus to light commercial and electric vehicles, which it will pursue with its alliance partner Nissan Motor Co. Ltd. Renault said it will provide further details on its plans for its own-brand passenger cars at a later date.

Renault, Nissan and Dongfeng will continue to cooperate in areas including components and connected vehicles. Renault will provide aftersales support for its 300,000 passenger car customers in China through its dealerships and its alliance with Nissan.

Renault operates in the Chinese light commercial vehicle segment through the Renault Brilliance Jinbei Automotive Co. Ltd. joint venture. It has two electric vehicle joint ventures, eGT New Energy Automotive Co. Ltd and Jiangxi Jiangling Group Electric Vehicle Co. Ltd.

Renault earlier in April was downgraded by S&P Global Ratings and canceled its dividend for 2019 due to the COVID-19 pandemic. It is reported to be seeking €4 billion to €5 billion worth of bank loans to bolster its liquidity.

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