French carmaker Renault SA (RNLSY - Free Report) and Japanese automaker Nissan Motor Co., Ltd. (NSANY - Free Report) have entered into a partnership with Chinese automaker Dongfeng Motor Group Co to manufacture battery-powered automobiles in the Chinese market, per a Reuters report. In fact, automakers across the globe are teaming up with local partners in China, the biggest car market in the world, where sales of electric vehicles are anticipated to increase.
Moreover, in China, per the government mandate, automakers are required to devote certain part of their total production to electric vehicles. Chinese authorities view electric vehicles as a promising industry and a way to reduce air pollution. The government has been encouraging sales by providing subsidies to buyers.
The idea behind this venture with Dongfeng Motor Corp. is to develop a vehicle on the basis of an SUV platform shared by Renault and Nissan. Production is slated to start in 2019. Notably, Ford Motor Company (F - Free Report) announced a joint venture deal to manufacture electric vehicles in China. Also, General Motors Co. (GM - Free Report) and other brands have revealed their plans of manufacturing electric vehicles in China.
Currently, Renault sports a Zacks Rank #1 (Strong Buy), whereas Nissan, Ford and General Motors carry a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Renault has a long-term growth rate of 4.6%.
Ford has an expected long-term earnings growth rate of 12.3%.
General Motors has a long-term growth rate of 9.2%.
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