Renault-Nissan Alliance and Dongfeng collaborate build electric cars

Renault-Nissan Alliance has officially announced a collaboration with Dongfeng Motor Group Co. to build electric car in China and join the global competition to meet Beijing's tight quota for vehicles with zero emissions. New Energy Automotive Co will have a 50% stake and develop an electric SUV to be produced in 2019.

China is the largest car market in the world where the country has determined electric and plug-in hybrids have accounts for a fifth of vehicle sales by 2025. Policy makers have long grappled with alarming levels of pollution in big cities.

Renault-Nissan has so far led a modern electric car with Nissan Leaf launched in 2010 and subcompact Zoe Renault was launched in 2012. But the position is gaining the strongest competition by Tesla and other mainstream car manufacturers.

Ford Motor Co. earlier this month will also set up a joint venture with automaker Anhui Zotye Automobile Co. to develop brand new electric vehicle and compete with other manufacturing plans such as Tesla, Daimler and General Motors.

Electrification pressure in China has changed the thinking of many automakers who until now refused to invest heavily in hybrid vehicles or pure electric. Toyota has rejected the battery-specific vehicle, but suddenly confirmed the electric car investment plan.