Renault and Geely to cooperate also in Brazil

The Renault Group and Geely Holding are joining forces to produce and sell zero- and low-emission vehicles in Brazil. Geely intends to acquire a stake in Renault do Brasil and, in return, will benefit from Renault’s local production, sales, and service resources.

Both parties have agreed in a framework agreement that Geely Holding will become a minority shareholder in Renault do Brasil through an unspecified investment.

Selling zero- and low-emission vehicles

In return, the Chinese will gain access to Renault’s existing network, specifically the Renault Group’s Ayrton Senna industrial complex in Paraná and its nationwide distribution network. The venture remains subject to entering definitive agreements and prior approval of the relevant regulatory authorities.

Through this cooperation, the two advanced production facilities of Renault Group’s Ayrton Senna Complex in São José dos Pinhais, Paraná, would be made available for the production of these all-new vehicles, in addition to the current Renault line-up, for both Geely Holding and Renault.

On the sales side, Renault do Brasil would become a distributor of Geely Holding’s portfolio of zero- and low-emission vehicle products in Brazil. Geely Holding would thus benefit from Renault’s strengths and commercial expertise, accelerating the expansion of the group’s business in Brazil, the primary automotive market in South America.

Not the first time

The companies have joined forces before, but not yet for electric cars. So, this deal in Brazil is a first. Geely and Renault already know each other well: in 2022, the Chinese bought a 34% stake in Renault Korea Motors, which focuses on hybrid and combustion cars.

In 2023, Renault and Geely founded Horse Powertrain, a 50/50 joint venture to design, develop, produce, and sell hybrid and combustion powertrain solutions. The company is based in Spain and operates in seven countries. It has a production capacity of 3.2 million units per year.

Luca de Meo, CEO of the Renault Group, commented: “Renault Group and Geely have already gone a pretty long way together: we successfully launched a joint venture in Korea and, with Horse, we have designed a world leader in powertrain technology.”

“Together, we have built trust and an effective working relationship. These are great assets that we want to leverage today with this new cooperation in Brazil. It will allow us to consolidate our industrial footprint in the state of Paraná and further strengthen the Renault brand’s position in this key market.” Brazil accounts for about 44% of Renault’s car sales in South America.

Daniel Li, CEO of Geely Holding Group, responded: “In this transformative era of the global automotive industry, it makes sense to traverse the path ahead with friends and partners. To achieve quantitative and qualitative growth, we cannot be satisfied just by staying comfortable in one place. We must go out to the world, adhere to long-term development, and commit to being open and collaborative.”