Renault Group and China’s Geely will invest 3.8bn reais ($714m) in Brazil to jointly develop new vehicles.

The plan includes allocating part of the funds to Geely’s new zero- and low-emissions technology (GEA) platform. This architecture will serve as foundation for two new models scheduled to enter production in the second half of 2026.

Remaining capital will go towards renovating a current Renault model for 2026 launch and introducing a further new vehicle in 2027.

The investment was announced at Ayrton Senna industrial complex in São José dos Pinhais, in the southern state of Paraná.

Renault Group chief growth officer and Renault brand CEO Fabrice Cambolive said: “Today we celebrate the next era of the Geely Holding Group and Renault Group partnership in Brazil. This is not just a traditional joint venture – it’s a strategic cooperation focused on a high-potential market.

“By combining our industrial know-how, strong commercial networks, and advanced electrified platforms, we will create a modern and competitive lineup that accelerates sales growth and extends the global footprint of Renault and Geely.”

The move comes shortly after Geely agreed to acquire a 26.4% shareholding in Renault do Brasil.

The deal gives the Chinese brand access to Renault’s manufacturing and commercial infrastructure to support its regional expansion.

According to Geely, the collaboration is intended to combine their industrial, technology and commercial capabilities to speed up product development for both brands in Brazil.

The partnership will focus on vehicles using zero- and low-emission drivetrains.

Geely Holding group senior vice president Victor Yang said: “We believe that this new type of partnership will bring a new vitality to Brazil’s automotive industry, zero and low emission ecosystem and regional economic development, and become a model for the global automotive industry in moving towards a green and intelligent future.”

Earlier, both the companies have set up several joint projects at global level.

These encompass joint investment in Renault Korea and the creation of Horse Powertrain, a business supplying hybrid and combustion powertrain systems.