Renault, a France automobile company, formed a hybrid vehicle venture alongside China’s Geely Holding Group. What does this mean for the future of automobiles in China? And what other Asian market will this deal affect? Check out AmonAvis for reviews on companies in France. If you are also looking for automobiles and automobile-related information, check out the reviews of looking4parking. This deal will seek to improve the automobile relationship between the Chinese and French. So, what are some things to note about the deal?
- More automobiles sales in China
With the advent of this deal, China will expand its automobile market. Geely Holdings Group is the biggest automobile company in China, and since their mission for a while is to improve and expand their markets, this is a good deal. Their strategy is to use the opportunity of partnerships to share and improve their technology.
Geely will also use this deal to improve their supply and manufacturing links, and this will help them reduce the manufacturing costs by a significant percentage. It will also help Geely spearhead the transition of the present automobile market in China into the future. Since Geely is the biggest automobile company in China by sales, this deal will further boost their pedigree because more cars will be produced, and more people will buy.
- The automobile sale will expand into South Korea’s market
A key aspect of the deal is that these cars will also be sold in South Korea’s market. Renault SA has been in this market for over twenty years under their brand, Renault Samsung Motors. They design and manufacture cars for sale in South Korea. They also manufacture other types of commercial vehicles and provide vehicle-related services to their clients.
Their partnership with Geely Holdings will ensure more production of hybrid vehicles in South Korea. It will also provide customers with improved car manufacturing technology since both companies will be tasked with producing, manufacturing, and selling these vehicles through shared technologies.
- Geely Holding Group could be in charge of this deal
There is a significant chance that Geely Holding group will be in charge of this deal. One of the reasons could be that they already have the market in their hands in China. Geely Holdings Group sells the most cars in China and is the benchmark for several Chinese companies. With a market share above 6%, Geely Holdings Group seems to have captured the hearts of the Chinese, which will be an excellent factor to consider in the deal.
- It will help to rebuild Renault’s presence in the Asian Market
This deal will expand into the bigger Asian market and help rebuild Renault’s presence in Asia. Renault put an end to its joint venture with Dongfeng Motor Group in 2020, which temporarily brought its participation in the Asian markets to an end. However, with this deal, they can come back stronger than before. Not only will they come back stronger than before, but they will also have a larger market to sell their cars: the whole Asian Hemisphere.
- Manufactured vehicles will be hybrid in nature: petrol and electric cars
The cars that will be designed, manufactured, and sold are hybrid vehicles that work with petrol and electricity. And this is one of the reasons this deal is great for the Asian populace. They move a step closer to reducing the effect of the global warming crisis by utilizing semi carbon-free vehicles.
Not only will these cars be hybrid, but they will also be manufactured in China, opening up more opportunities for citizens to be part of the process.