Renault said it would increase its share capital by around 1 billion Chinese RMB, or roughly 128.5 million euros ($144 million), to acquire its 50% stake in the new venture.

"China is a key market for Groupe Renault. This partnership in electric vehicle business with JMCG will support our growth plan in China and our EV capabilities," said Francois Provost, Senior Vice President and Chairman of China region for Renault.

"As a pioneer and leader in the European EV market for since 10 years, we will capitalize on our experience in EV R&D, production, sales and services," added Provost.