French car maker Renault SA on Tuesday signed an import and distribution agreement with Nissan's partner in Taiwan, Yulon Motor Company, to increase its sales on the island.
Under the agreement signed in Taipei, Yulon will become the exclusive agent in Taiwan for the French car maker to begin selling Scenic, Celio and Laguna next year, said Patrick Debrot, marketing and sales vice president of Renault, Asia Pacific.
Renault has initially targeted a 1.2 percent market share in Taiwan with an aim to rise to five percent in the medium term, he said.
"It (Taiwan) is a big and demanding market, where we are going to focus our energies on developing our brand with strong support from Yulon Motor," he said.
Renault saw a potential for import vehicles in Taiwan after Taipei joins the World Trade Organization, possibly early next year, he said.
With 410,419 vehicles sold in 1999, Taiwan is the fifth largest automobile market in Asia.
Renault has sold only 150,000 cars in Taiwan since entering the island's market in 1983. Yulon assembles and sells Nissan vehicles in Taiwan.
Nissan has a 25 percent equity stake in Yulon Motor, which sold 72,000 cars here last year, taking a 7.5 percent market share.
In March 1999 Renault bought a controlling 36.8 percent stake in Nissan Motor, which at the time was struggling with losses and debt.
The Renault-Nissan alliance "has made it possible for Yulon to collaborate with Renault, injecting new vitality into Taiwan's automobile market, and introducing Renault's highly competitive models into Taiwan," said Yen Kai-tai, vice chairman and president to Yulon Motor -- TAIPEI (AFP)
© 2000 Al Bawaba (www.albawaba.com)
