On May 10, Geely Automobile signed a share subscription agreement with Renault Korea Automobile, in which Geely Automobile agreed to subscribe for 45.375 million shares of Renault Korea Automobile (34.02%) for 1.376 billion yuan. In the future, Renault Korea Automobile will mainly promote CMA platform hybrid models in its local market, including a number of CMA platform models of the Lynk & Co brand after being put into production in South Korea, and will be sold in the form of "re-labeling" Renault Samsung.
At present, Zhejiang Geely Holding Group Co., Ltd. has applied for the trademark of "Lynk & Co Asia Pacific" and established Lynk & Co Asia Pacific Company, which is responsible for the sale of Japan, South Korea, Southeast Asia and other markets outside China. In addition to the Korean market, Renault Korea Motor also plans to launch the above products in overseas markets, and the focus of the next battle may be the more competitive Japanese market.
The latest data shows that Renault Korea Motor Company sold 20,318 vehicles in April, up 117% year-on-year. Domestic sales in South Korea were only 2,328 units, down 57% year-on-year, while export sales in the same period were 17,990 units, up 364% year-on-year. Renault Korean automobiles still have a large export demand, and in the future, Geely will use Renault's Busan plant in South Korea to sell its Lynk & Co models to the European market in the form of "re-labeling" Renault.
The new product will utilize Renault's existing sales and aftermarket network in Korea and will be produced at Renault's Samsung Busan plant, with mass production expected in 2024. In this cooperation, Renault can obtain Geely Hybrid technical support to achieve double growth in the penetration rate and sales volume of the brand in the Korean market and export market, so as to accelerate the landing of the "Renaulution Plan", while Lee Shufu, chairman of Geely Holding Group, will use its brand to enhance Geely's influence in developed countries such as Europe and South Korea to improve the global layout.