Renault Group has signed a framework agreement with China’s Geely to extend their strategic partnership into Brazil, with a focus on producing and selling zero and low emission vehicles.

This move will see Geely become a minority shareholder in Renault do Brasil, enabling access to localised production, sales, and service resources.

However, the venture is subject to signing definitive agreements and securing regulatory approvals.

Geely Holding Group chairman Eric Li said: “Geely’s cooperation with Renault is part of its commitment to working with global partners in transforming and improving the industry in a sustainable direction.”

The collaboration will utilise Renault Group's Ayrton Senna Complex in São José dos Pinhais, Paraná, to produce new vehicles for both companies, alongside the existing Renault lineup.

Renault do Brasil will distribute Geely’s portfolio of zero and low emission vehicles, leveraging Renault's commercial expertise to bolster Geely's presence in Brazilian automotive market.

Last year, the two firms created HORSE Powertrain joint venture for producing hybrid systems, internal combustion engines, transmissions, and battery solutions.

In the same year, the companies have begun selling vehicles manufactured at their jointly owned factory in South Korea, reported Reuters.

Renault Group CEO Luca de Meo said: “Renault Group and Geely have already gone a pretty long way together: we successfully launched a joint venture in Korea and, with Horse, we have designed a world leader in powertrain technology.

“Together, we have built trust and an effective working relationship. These are great assets that we want to leverage today with this new cooperation in Brazil. It will allow us to consolidate our industrial footprint in the state of Paraná and to further strengthen the position of the Renault brand on this key market.”