Renault, Alibaba Partner on New Business Channels | Auto Finance News | Auto Finance News

Renault, Alibaba Partner on New Business Channels

Courtesy of Alibaba

Renault SA  formed a strategic partnership with Chinese e-commerce behemoth Alibaba to help sell cars in the growing Chinese market, the French manufacturer said on Wednesday.

The cars will be sold on Alibaba’s online Tmall service, a business-to-consumer retail platform. The idea is to“forge a unique experience to Tmall and Renault customers worldwide,” the statement said.

Renault hopes the deal will help sell 550,000 vehicles in China as part of its goal to grow revenue 22% globally by 2022, according to Bloomberg

The companies did not reveal further details on their initiatives or financing structure, but Alibaba said more information would be revealed late next month according to its own statement.

Separately, Alibaba’s Tmall announced the development of a car vending machine earlier this year, in which consumers can use their phone to browse through cars stored in a tall windowed building and have the car brought down to street level via elevator lifts. The deal was made in partnership with Ford Motors so that the American OEM’s vehicles will be prominently displayed in these vending machines.

Consumers with a “good credit score” — Alibaba has previously said a score above 750 through its own credit scoring model called Sesame — can purchase the vehicle with a 10% down payment and a commitment to monthly payments through Alipay, according to Reuters.

The Renault-Nissan-Mitsubishi alliance signed an agreement with China’s leading ride-hailing operator DiDi Chuxing last month to explore car-sharing program in the country. Additionally, Ford Motor Co. teamed up with Alibaba as part of an efforts to revive growth momentum in China.

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