Geely and Renault team up, spending 899,000,000 euros to compete with BYD’s 25,000 cars per month
19/09/2026 13:00
Updated to
19/09/2026 13:00
The competition for the Brazilian and South American markets in electric and hybrid vehicles is intensifying, with Renault and Geely just increasing their stakes. Both companies have announced an additional investment of 319 million euros through their joint venture in Brazil, expanding the industrial cooperation they began less than a year ago in that South American country. In Europe, Geely and Renault maintain close collaboration, primarily through their engine company Horse Powertrain.
With this new investment, the combined commitment of both brands in Brazil between 2025 and 2027 now amounts to 899 million euros, a figure that covers the production of new energy vehicles, factory upgrades, and business expansion. This is not an isolated move but rather an intensification of a partnership that began with a very clear goal: to counter BYD’s rapid expansion in the Brazilian market.
A partnership that started less than a year ago
The agreement between the two companies dates back to November 2025, when Geely Holding Group and Geely Automobile Holdings completed the acquisition of a 26.4% stake in Renault do Brasil. Under the terms of the agreement, Geely would utilize Renault’s existing manufacturing facilities in Brazil, along with its supply chain and dealership network, to accelerate the introduction of new energy vehicles to the country. In return, Renault would gain access to Geely’s electric vehicle technology to expand its own electrified lineup.
The distribution of benefits between the two brands is quite clear. For Geely, the deal provides direct access to Renault’s local production capacity and its established sales network in the country. For Renault, the benefits lie in improving the utilization of its factories while expanding its lineup with larger vehicles. As part of this new investment plan, Renault’s flexible-fuel Hybrid E-Tech 4x4 hybrid technology will go into production in Brazil starting in 2027.
BYD, the rival that forces acceleration
The context behind this investment has a specific name. BYD sold 24,467 vehicles in Brazil during August 2026, a 149.3% increase from the previous year, giving it a 9.3% market share and making it the fourth-largest automobile manufacturer in the country. The Dolphin Mini was the best-selling model of the Chinese brand. Meanwhile, BYD is accelerating its local production: in July, its plant in Camaçari, Brazil, reached 100,000 units of new energy vehicles manufactured.
Geely is also accelerating, though from a smaller base
Geely itself is achieving remarkable results in Brazil. The brand sold 7,524 vehicles in August, an increase of over 4,600% year-on-year, its best monthly sales figure since entering the market, even surpassing established manufacturers like Nissan. Although these figures are still far behind those of BYD, they demonstrate the momentum the Chinese brand is gaining in the country, thanks in part to this partnership with Renault.
In the near future, the Geely EX2 will begin to be produced locally at Renault’s Ayrton Senna Complex in Brazil, becoming the second model manufactured in the country under this partnership after the plug-in hybrid SUV EX5 EM-i, and the first fully electric vehicle produced at that facility. Production of the EX5 EM-i is scheduled to start in the third quarter of 2026, while the EX2 will begin production and delivery in Brazil in the fourth quarter of the same year.