Under the agreement, GA (SGP), a wholly-owned subsidiary of Geely Automobile, will contribute the full share capital of its own subsidiary and provide a cash investment in exchange for common shares, convertible preferred shares, and warrants in the JV Company. GH (SGP), a wholly-owned subsidiary of Geely Holding, will contribute the issued share capital of its subsidiary in return for common shares.
Following completion of the transaction, the JV Company will be owned 73.57% by Renault, 21.29% by GA (SGP), 5.11% by GH (SGP), and 0.03% by an independent third party. The CEO will be appointed by the JV Board based on Renault’s proposal.
Geely stated that this partnership provides the company with immediate access to Brazil, the largest automotive market in Latin America. Through the JV Company, Geely will benefit from Renault’s established presence in Brazil, including a well-developed distribution system and a broad nationwide dealer network that supports both sales and after-sales services. These advantages are expected to help Geely grow its market share efficiently.
The collaboration between Geely and Renault began in August 2021, when both companies signed a memorandum of understanding to develop hybrid technologies targeting markets in China and South Korea. In January 2022, the partnership expanded with an agreement to manufacture Renault-branded hybrid electric vehicles at Renault’s Busan plant in South Korea. These vehicles use Geely’s CMA platform and hybrid systems.
Later in 2022, Geely’s subsidiary CIL acquired a 34.02% stake in Renault Korea for RMB 1.376 billion, further deepening local cooperation. In November 2022, Geely Holding, Geely Automobile, and Renault agreed to form a global joint venture focusing on internal combustion, hybrid, and plug-in hybrid powertrain technologies. This joint venture was officially launched in May 2024 as HORSE Powertrain Limited, with equal ownership between Geely and Renault. HORSE Powertrain operates 17 manufacturing sites and five R&D centers, employing around 19,000 staff and aiming for €15 billion in annual revenue.
In the second half of 2024, the first jointly developed model—the all-new Renault Koleos—was introduced in South Korea. Built on Geely’s CMA platform at Renault Korea’s Busan plant, the vehicle is supplied to both local and export markets.
Additionally, in February 2024, Geely Holding signed a framework agreement with Renault to become a minority shareholder in Renault’s Brazilian operations. The companies committed to developing low- and zero-emission vehicles and expanding their presence across Latin America.
