Geely to Buy Stake in Renault’s Brazil Unit to Make and Sell EVs
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Geely will produce vehicles at Renault's Ayrton Senna plant in São José dos Pinhais, Paraná. Photo: Renault Group
Chinese automaker Geely has signed a deal to buy a stake in Renault Group’s Brazilian subsidiary, an “asset-light” move to produce and sell new-energy vehicles (NEVs) in Latin America’s largest auto market.
Under the final agreement signed Nov. 3, Hong Kong-listed Geely Automobile Holdings Ltd. and its parent Zhejiang Geely Holding Group Co. Ltd. will acquire a combined 26.4% stake in the French automaker’s local unit, according to company statements.
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- Geely will acquire a 26.4% stake in Renault's Brazilian unit for about 585 million yuan ($80.8 million), mainly through a technology-for-equity swap.
- The partnership enables Geely to use Renault’s factory and network to sell and produce NEVs in Brazil, avoiding heavy capital investment.
- Brazil sold 2.6 million new vehicles in 2024; other Chinese automakers like BYD and Great Wall Motor have invested heavily in local production.
AI generated, for reference only
Who’s Who
- Zhejiang Geely Holding Group Co. Ltd.
- Zhejiang Geely Holding Group Co. Ltd. is the parent company of Hong Kong-listed Geely Automobile Holdings Ltd. It has acquired a 26.4% stake in Renault Group's Brazilian subsidiary, primarily through a technology-for-equity swap. This "asset-light" strategy allows Geely to enter the Brazilian market without heavy capital spending, leveraging Renault's existing infrastructure to produce and sell new-energy vehicles.
- Geely Automobile Holdings Ltd.
- Geely Automobile Holdings Ltd., a Hong Kong-listed entity, along with its parent Zhejiang Geely Holding Group Co. Ltd., is acquiring a 26.4% stake in Renault Group’s Brazilian subsidiary. This "asset-light" strategy, involving a technology-for-equity swap with a cash payment of 585 million yuan, aims to produce and sell new-energy vehicles in Brazil. Geely will leverage Renault's existing infrastructure for market entry.
- Renault Group
- The Renault Group is a French automaker that has entered into a partnership with Chinese automaker Geely. Geely will acquire a 26.4% stake in Renault's Brazilian subsidiary through a technology-for-equity swap. This collaboration allows Geely to produce and sell new-energy vehicles (NEVs) in Brazil using Renault's factory and sales network. Renault will also utilize Geely's NEV platform for its own branded models. This is their second vehicle production collaboration, following a similar project in South Korea.
- BYD Co. Ltd.
- BYD Co. Ltd. (比亚迪股份有限公司) has made significant investments in Brazil, including manufacturing at a new 7.1 billion yuan facility. During the first nine months of 2025, BYD's sales in Brazil surged by 55%, demonstrating its strong growth in the region.
- Chery Automobile Co. Ltd.
- Chery Automobile Co. Ltd. (奇瑞汽车股份有限公司) is a Chinese automaker experiencing significant growth in the Brazilian market. In the first nine months of 2025, its sales in Brazil surged by 11.1%. Unlike Geely, Chery and other Chinese rivals like BYD and Great Wall Motor have invested heavily in local production bases to support their expansion.
- Great Wall Motor Co. Ltd.
- Great Wall Motor Co. Ltd. (长城汽车股份有限公司) is a Chinese automaker actively expanding in Brazil. Unlike Geely, Great Wall Motor has heavily invested in local production, starting manufacturing at a former Mercedes-Benz plant in August. The company is experiencing significant growth, with sales surging 31.3% in Brazil in the first nine months of 2025.
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What Happened When
- 2024：
- 2.6 million new vehicles were sold in Brazil.
- June 2025：
- A company filing revealed that Geely Auto would pay about 585 million yuan ($80.8 million) in cash as part of the technology-for-equity swap.
- July 2025：
- BYD began manufacturing at its new 7.1 billion yuan facility in Brazil.
- August 2025：
- Great Wall Motor started production at a former Mercedes-Benz plant in Brazil.
- First nine months of 2025：
- Sales for BYD, Chery Automobile, and Great Wall Motor surged 55%, 11.1%, and 31.3% respectively in Brazil.
- Nov. 3, 2025：
- Geely signed the final agreement to acquire a combined 26.4% stake in Renault Group’s Brazilian subsidiary.
AI generated, for reference only
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