In another sign of how the electrification is shaking up the global auto business, France’s Renault Group and China’s Geely Holding Group have signed a memorandum of understanding to collaborate on sales of hybrid vehicles.
The cooperation, which would accelerate a “Renaulution Plan,” is focused on China and South Korea as initial core markets, Geely said in a statement today.
In China, the world’s largest auto market where new energy vehicles are the fast-growing segment, the two will introduce Renault-branded hybrid vehicles. In South Korea, where Renault Samsung Motors has over two decades of experience, Geely Holding and Renault Group will explore localization of vehicles based on Geely’s Lynk & Co. energy efficient vehicle platforms for local markets, the statement said.
Renault sold more than 2.9 million vehicles globally in 2020; Geely Holding sold more than 2.1 million in 2020, including more than 660,000 by Geely-owned Volvo Car. Hong Kong-listed Geely Auto Group added 1.43 million. Geely Holding also holds a stake in Daimler.
Shares of China electric vehicle makers such as NIO and XPeng have soared in the past year on strong demand at home. BYD, China’s top EV maker, said last week sales more than tripled in July from a year earlier (see related story here).
Geely Holding Chairman Li Shufu is worth $21 billion on the Forbes Real-Time Billionaires List today.
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