Following an announced collaboration earlier this year, Geely Auto, China’s largest privately-owned automotive group, will acquire more than a third of the shares in Renault Korea Motors (RKM), according to a joint company statement. Geely Automobile Holdings via its subsidiary, Centurion Industries Limited, will hold 34.02% of the total RKM-issued share capital.

Renault Group remains the majority shareholder in RKM and will continue to fully consolidate the entity. The deal is subject to approvals by relevant authorities.

In January 2022, Geely Auto parent company, Geely Holding Group and Renault Group jointly announced a collaboration to bring an all-new product portfolio of fuel-efficient hybrid electric vehicles (HEV) and internal combustion engine (ICE) models to the South Korean market. The new vehicles will be produced at the current Renault Korea Motors facility in Busan, South Korea, with volume production forecast to begin in 2024.

The new products will utilize Geely’s Compact Modular Architecture, developed by the holding group’s R&D center in Sweden, and its advanced hybrid powertrain technologies. Renault and RKM will contribute technologies and expertise in design and customer experience, according to Geely.