electrive.com — 2023-06-22
Automotive Industry
Renault could be the first foreign carmaker to invest in an EV facility in South Korea. According to local media, the company is looking to expand its production facility in Busan and make up to 200,000 electric cars there per year.
The investment in the new EV facility could amount to more than one trillion won, equivalent to about €703m. Production could kick off as early as 2026. Renault already has a factory in Busan – some 320 kilometres southeast of Seoul- building seven ICE models.
Guido Haak, executive vice president of Renault Group, met with Korea’s Busan Mayor Park Heong-joon in Paris to discuss the possible investment. “The Busan plant is an important production base for us. We will accelerate our transition to future vehicles through large-scale investments”, the group vice chairman was quoted as saying.
Renault Korea has a hard time competing with local carmakers in South Korea. Compared to the same period last year, sales there fell 10% from January 2023 to May 2023.
The subsidiary is owned approximately 53% by Renault, 34% by Geely and 13% by Samsung. KDE Global reports that Geely and Renault announced a partnership last year, to “design and produce electric hybrid and gasoline-fueled vehicles in Korea for domestic sales and exports”.