Renault Samsung, the South Korean unit of Renault S.A., said on Monday that it would join hands with Lynk & Co. to develop an environment-friendly vehicle for the South Korean market.
Lynk & Co. is an automotive brand formed as a joint venture between Geely and Volvo in 2016.
Renault Group has announced that it will form a joint venture with Geely, the Chinese owner of Volvo cars, to produce vehicles for China and South Korea. They plan to develop a Renault-brand hybrid passenger cars for sale in China and a Lynk & Co.-brand eco-friendly model for Korea.
The market for eco-friendly cars grows in South Korea
The market for eco-friendly cars is booming in South Korea in recent times. Data published by South Korea earlier, eco-friendly cars took up 71% of new public vehicles in 2020. According to government data, the country’s 609 public organizations purchased 7,736 automobiles in 2020, of which 5,494 were eco-friendly models. These include electric, hydrogen fuel cell, and hybrid cars.
The combined domestic sales of eco-friendly vehicles of Hyundai and Kia jumped nearly 40 percent in the first half of this year, compared with a year earlier.
Renault Samsung desperately needs a winner as its sales keep falling
Unlike Hyundai and Kia, Renault Samsung has been meeting with falling car sales. In the wake of the falling sales of its cars, Renault Samsung needs a model which will follow the XM3 compact SUV to boost its sales.
In April, Renault said it would quit its passenger car business in China after its venture with Dongfeng Motor Group that ended up in loss. But this union with Geely means that Renault is going to return to the Chinese automobile market.
From January to July, Renault Samsung’s sales dropped 13% to 66,959 vehicles from 76,588 units during the same period of last year.
Renault holds an 81% stake in Renault Samsung Motors Corp.
