The French group signed a memorandum of understanding with Chinese automotive giant Geely yesterday. Within the scope of the agreement, which is considered as Renault's re-entry to the Chinese market, hybrid vehicles will be produced for Renault at Geely's factories in China. The joint venture is also expected to produce electric cars.
Thanks to all these initiatives, Renault aims to re-establish itself in the Chinese market, known for its attractiveness and profitability, one year after ending its cooperation with Dongfeng. This orientation is considered as the cornerstone of the French firm's project to expand its operations in the rapidly growing Asian market in general, especially in China. The initiative will initially focus on China and South Korea, but will likely expand quickly to include other Asian markets. A source close to the matter told the media that Geely and Renault are also considering developing fully electric battery cars.
The new venture will differ from the collaboration between Geely and Daimler that was launched in 2019. Although it seems to be modeled on Daimler's EV-oriented initiative, which sells Geely's production in China using its own global sales network, it is stated that the Geely-Renault partnership will operate differently from this model.
Source: China International Radio