SEOUL, Aug. 31 (Yonhap) — Renault Korea Motors, the South Korean division of Renault S.A., announced Thursday that it will be aiming to boost sales by emphasizing the production of gasoline hybrid models, while making preparations for the fabrication of all-electric vehicles.
The company’s current lineup includes the XM3 compact SUV, the QM6 SUV, and the SM6 midsize sedan, with the XM3 offering a hybrid electric version. In the second half of next year, Renault Korea will be introducing a midsized gasoline hybrid SUV model as part of its Aurora 1 project.
Renault Korea CEO Stephane Deblaise stated in a press conference in central Seoul that the most pressing task for the company is to introduce gasoline hybrid cars, although they are open to the possibility of producing all-electric cars, or battery electric vehicles (BEVs), if the right solutions are found.
The company has also expressed its willingness to collaborate with Korean companies, such as LG Energy Solution, SK On, and Samsung SDI Co., regarding car battery technology, although they have not provided any further details on the matter.
The new SUV model is being developed in a joint project with Geely Automobile Holdings, China’s largest privately owned automotive group. It will be built on the compact modular architecture (CMA) platform, which was jointly created by Geely and Volvo Cars at the Chinese carmaker’s research and development center in Sweden.
In January last year, Geely Holding Group and Renault Group announced an agreement to develop a lineup of fuel-efficient hybrid electric vehicles (HEVs) and internal combustion engine models for the Korean market and abroad. HEVs are gasoline hybrid models.
When asked if the company has plans to add gasoline hybrid versions of the SM6 and QM6 to its lineup, the CEO said there is no such plan at the moment.
Renault Korea is also preparing for the upcoming era of BEVs, the executive said. The company is currently in talks with the South Korean government to manufacture BEVs at its sole Busan plant, 320 kilometers southeast of Seoul.
Busan Mayor Park Heong-joon met with Renault Executive Vice President Guido Haak in Paris in June to discuss Busan’s bid to host the World Expo 2030. In the meeting, Haak reportedly said the French carmaker plans to invest in the Busan plant in order to produce 200,000 units a year of all-electric vehicles, starting in 2026.
The 300,000-unit-a-year Busan plant is an important manufacturing base for Renault Group, and they are seeking support from South Korea’s central government and the Busan city government.
From January to July, Renault Korea’s sales dropped 25 percent to 69,682 vehicles from 92,829 units in the same period last year due to weak demand for its models.
Renault has a 52.82 percent stake in Renault Korea, while China’s Geely Automobile Holdings and Samsung Card Co. hold 34.02 percent and 13.13 percent stakes, respectively.
kyongae.choi@yna.co.kr
(END)