Geely to acquire stake in Renault's subsidiary in Brazil

China's Geely and French carmaker Renault Group have signed definitive agreements expanding their strategic partnership to Brazil, marking a new phase in the two automakers' global cooperation on electrification and emerging markets.

Under the deal, Geely will acquire a 26.4 percent stake in Renault's Brazilian subsidiary, while Renault retains majority ownership and will continue to consolidate the business in its accounts.

The move gives Geely access to Renault's industrial and commercial infrastructure in Brazil, allowing it to accelerate growth in Latin America's largest automotive market.

Production of Geely-branded vehicles will begin at Renault's Ayrton Senna plant in the country, where the facility will build models for both Renault and Geely.

The Geely EX5 electric SUV is already available in Brazil through a network of dedicated dealerships operated by Renault.

Renault will also distribute Geely's range of zero- and low-emission vehicles locally, broadening its offering and creating new business opportunities in sales, financing and aftersales services.

The collaboration will see Renault leverage Geely's GEA new energy architecture to expand its Brazilian product line-up with hybrid and fully electric models.

The companies said the arrangement will increase production efficiency and competitiveness at Renault's Brazilian operations.

François Provost, CEO of Renault Group, called the partnership "a decisive step forward" in Renault's international strategy.

"It establishes an agile cooperation founded on industrial excellence and technological leadership," he said.

"Once again, combining our strengths will make us more competitive, more innovative, and more responsive in a fast-evolving automotive market."

Li Shufu, chairman of Geely Holding Group, said the deal highlights "a win-win scenario" for both partners.

"Our continued cooperation with Renault in exploring new markets and new opportunities will make for a win-win scenario as both Renault and Geely are able to leverage technology scales on a global level to bring the best products to market," he said.

The tie-up strengthens both automakers' presence in a key market that accounted for more than 40 percent of vehicle registrations in Latin America in the first half of 2025.

Renault and Geely have previously established several global ventures, including a joint investment in Renault Korea and the creation of Horse Powertrain, their dedicated internal-combustion powertrain company.