- As a minority shareholder, Geely can now leverage Renault Brazil's resources to accelerate its expansion in the region.
- Renault will utilize Geely's GEA new energy platform to expand its zero-emission and low-emission vehicle lineup for the Brazilian market.
Chinese auto giant Geely (HKG: 0175) will acquire a minority stake in Renault Brazil, paving the way for its business expansion in South America.
Geely Holding Group and Geely Auto have signed an agreement with Renault Group for Geely to acquire a 26.4 percent stake in Renault do Brasil, according to a statement released today.
Renault Group remains the controlling shareholder of Renault do Brasil and will continue to consolidate the company in its financial statements.
As a minority shareholder, Geely can now leverage Renault do Brasil's industrial and commercial resources to accelerate its expansion in the region, Geely said.
The Geely EX5 electric SUV (sport utility vehicle) is already sold in the Brazilian market through dedicated dealerships of Renault's network.
Renault do Brasil will increase production capacity by manufacturing vehicles for both the Geely Auto brand and Renault at the Ayrton Senna plant in São José dos Pinhais, Paraná, the statement said.
At the same time, Renault will leverage Geely's GEA new energy platform to expand its zero-emission and low-emission vehicle lineup for the Brazilian market.
In February, Geely Holding announced its plan to invest in Renault Brazil as a minority shareholder, gaining access to localized production, sales, and service resources in the country.
In the first half of 2025, Brazil's vehicle registrations will account for over 40 percent of Latin America's total automotive registrations, today's statement noted.
Geely's domestic peers BYD (HKG: 1211) and GWM (HKG: 2333) have already commenced localized production in Brazil.
On July 1, BYD's passenger vehicle plant in Brazil commenced operations, with Phase 1 targeting an annual output of 150,000 new energy vehicles (NEVs).
On October 9, BYD's 14 millionth NEV rolled off the Brazilian production line. Brazilian President Luiz Inacio Lula da Silva attended a ceremony and became the vehicle's owner.
On August 15, GWM's Brazilian plant commenced operations with an annual capacity of 50,000 vehicles.
Additionally, according to a Reuters report today, Renault is in talks with more Chinese automakers, including Chery, to explore partnerships to jointly produce and sell cars.
