Renault said it is looking to revive business in China by establishing a hybrid vehicle joint venture with Geely Holding Group, a year after it completed its previous operation in the country.
The two automakers have signed a framework agreement to set up the joint venture, which would make and sell Renault-branded petrol-electric hybrid vehicles in China using Geely’s technologies, supply chains, and manufacturing facilities while Renault would concentrate on sales and marketing.
As part of the partnership, the two automakers also agreed to explore a joint localization of Geely’s Lynk & Co-brand hybrid vehicles in South Korea.
The venture would focus on China and South Korea, though it can expand its presence into other Asian markets in future.
Geely and Renault are also looking at developing electric battery cars for the venture.
Both automakers would make the vehicles in Geely’s existing factories with an aim to eventually export the vehicles. It was not known as of yet which plants will be used for the operation.