The Renault Group partners with Geely to expand Asian presence
The Renault Group has announced a partnership with a China-based vehicle manufacturer as post-pandemic sales fail to gain momentum in Asia.
The Renault Group will share resources and technology with Geely Holding, China’s largest privately owned automotive group, as they focus on bringing hybrid vehicles to the fast-growing Asian markets.
The companies will jointly release a line of Renault branded hybrid vehicles in China and the pair also plans to sell cars in South Korea using the energy-efficient vehicle technology of Geely subsidiary, Lynk & Co.
The partnership comes as the French car manufacturer Renault continues to be hit hard by the Covid-19 pandemic, a worldwide shortage of semiconductors and the fall out from the arrest of former boss Carlos Ghosn’s in 2018.
Sales were down 24.2 per cent in the first half of 2021 compared to pre-pandemic levels and Renault has struggled to maintain a presence in Asian markets.
Just 2,324 Renault branded vehicles sold in China during 2020, down -89.4 per cent compared to 2019. The Renault Group has failed to increase sales in the Asia Pacific region during the first half of 2021 despite the market expanding more than 27 percent.
According to a statement by Geely Holding’s: “Renault will contribute on branding strategy, channel and service development” while the companies capitalise on Geely’s existing contacts in Chinese industry.
Read more: New car sales fall to lowest level since 1998 amid pingdemic