Shanghai, China, Aug 9 (EFE).- Chinese automaker Geely announced Monday an alliance with France’s Renault to develop hybrid vehicles in China and South Korea.
In a statement posted on its official WeChat account, the company – owner of Swedish carmaker Volvo Cars – said that the venture in China will focus on the joint development of hybrid vehicles using Geely’s technologies and sold under the Renault brand.
In South Korea, the two automakers will jointly create models suitable for the Korean market based on the “energy-efficient vehicle platforms” of Lynk & Co’s, a subsidiary of Geely, taking advantage of Renault Samsung Motors’ over two-decade experience in the country.
So far, no details of the investment or the time frame of the agreement have been made public nor has it been specified what models will be developed.
According to consulting firm IHS Markit, 1.2 million electric vehicles were sold in China in 2020 – 6.3 percent of the total -, a figure that could increase to 2.2 million in 2021 and exceed 6 million in 2025, when such cars are expected to account for almost a quarter of automobile sales in the Asian country.
Hong Kong daily South China Morning Post said Monday that this agreement represents a renewed effort by Renault to gain a foothold in the Chinese market after the French group divested its 50 percent stake in a joint venture with local manufacturer Dongfeng Motor in April 2020 following the worst months of the pandemic in the country. EFE