Renault Group Chairman François Provost visited Korea and emphasized cooperation with companies including LG Energy Solution (373220.KS), POSCO Holdings (005490.KS) and LG Electronics (066570.KS). He officially announced plans to enter the Korean electric vehicle market and unveiled the group's electrification strategy to achieve a 50-50 split between EVs and hybrids by 2030.
At a press meeting with Korean media on Thursday, Provost expressed his commitment to strengthening collaboration with domestic companies including LG Energy Solution. "Renault has built its own supplier ecosystem within Korea," he said. "We have LG Energy Solution and LG Electronics, and we are cooperating with POSCO in multiple areas, not just steel plates."
"Renault Group started its automotive battery business with LG Energy Solution in the Korean market in 2013," he said. "LG Energy Solution will remain a core strategic partner of Renault Group going forward."
Provost also disclosed Renault Korea's eco-friendly vehicle strategy. "The time has come for Renault Korea to consider full electric vehicle production," he said. "As Renault Group leads the EV trend in Europe, we are looking at the timing and plans to improve the foundation so that we can produce fully electric vehicles in Korea in line with the group's direction."
Renault Korea has yet to launch an EV in the domestic market. Its only involvement with electric vehicles has been a contract manufacturing agreement with EV brand Polestar to produce the Polestar 4 SUV.
Renault Group's decision to declare its entry into the Korean EV market reflects the centrality of electrification in the group's strategy. "Of the 22 new models planned ahead, 16 are pure electric vehicle lineups," Provost said. "Renault Group plans to continue investing in EVs, and this strategy will greatly benefit Renault Korea as it shifts its focus to electric vehicles."
However, Provost drew a clear line against joining the EV price war led by Chinese companies. "Chinese automakers are accelerating pricing pressure worldwide," he said. "Renault Group will not jump into that competition. We intend to focus on stable and reasonable price ranges while trusting in our product competitiveness."
When asked about concerns that the partnership with Geely could reinforce the perception that Renault Korea is a Chinese brand, Provost responded, "Both groups share a partnership strategy of utilizing the same synergistic resources." He added, "Renault Korea can build vehicles precisely tailored to the demands and requirements of the Korean market with localized technology."
Renault Group jointly established Horse Powertrain, an automotive powertrain production company, with Geely Group in 2024. Geely Group is also the second-largest shareholder of Renault Korea.