If a company is looking to increase sales in China, it makes sense to take a gander at what tech giant Alibaba Group Holding Ltd (NYSE:BABA) may bring to the table to help make that happen. That’s exactly what a French carmaker with some ambitious goals for the market has done.
Bloomberg has the news on Alibaba’s pact with Renault SA.
Renault SA is deepening a partnership with Alibaba Group Holding Ltd. to boost sales in China, a market the French carmaker is counting on as the biggest growth pillar in the coming years.
As part of Renault’s push, Chinese consumers will be able to buy the company’s cars online through Alibaba’s Tmall service, Francois Provost, head of the automaker’s Asia Pacific business, said in an interview in Shanghai on Wednesday. Renault said it targets a five-fold increase in China sales in the next five years.
For round numbers, Renault has a goal to sell 550,000 vehicles in China as part of its overall global sales push. To help bring that goal to fruition, Renault plans to develop nine new models for local production with a team of engineers. In addition to offering vehicles for sale on Alibaba’s platform, Renault will also install connectivity software from the e-commerce giant in some models.
Renault isn’t the only carmaker to partner up with Alibaba in a bid to make headway in China, as Ford Motor Co. has also teamed up with the tech heavyweight.
Alibaba Group Holding Ltd shares fell $0.25 (-0.13%) in premarket trading Thursday. Year-to-date, BABA has gained 9.54%, versus a 2.38% rise in the benchmark S&P 500 index during the same period.