According to foreign media reports, Renault is in talks with Chery Automobile about launching a manufacturing and sales partnership in South America, as both companies seek to expand their presence in the region.
The reports say Chery would collaborate with Renault by leveraging its financial strength and product design capabilities — investing capital and providing product designs — while Renault would open up its local factory network for Chery’s use. Specifically, Chery is expected to produce internal combustion engine (ICE) vehicles at Renault’s Envigado plant in Colombia. Most of these vehicles would be sold under the Renault badge and distributed through Renault’s sales network, while a small portion would carry the Chery brand. In addition, Chery plans to assemble and produce plug-in hybrid pickup trucks at Renault’s Córdoba plant in Argentina, which would also be distributed by Renault. However, the negotiations have not yet been finalized, and neither Renault nor Chery has publicly commented.
There are strategic reasons behind Renault’s pursuit of this partnership. For Renault, working with Chery could help expand its market share in South America, enriching its local product lineup by introducing Chery-designed fuel-powered vehicles and plug-in hybrid pickups. These new models, with their distinctive designs and affordable pricing, are expected to attract more consumers, boosting Renault’s sales and market penetration in the region. At the same time, Chery’s cost-control advantages could help Renault lower production costs, enhance price competitiveness, and strengthen its market position. South America remains a high-potential growth market for Renault, but to make a bigger breakthrough, the company needs more competitive and diverse offerings — a gap Chery can help fill.
From Chery’s perspective, the partnership would provide a significant boost to its globalization strategy. Chery has long been China’s leading passenger car exporter since 2003 and has valuable experience in overseas market expansion — insights that could also benefit Renault in better integrating into the South American market. By teaming up with Renault, Chery can enter the region quickly without the need to build factories and establish distribution networks independently, thus reducing market entry costs and risks. Meanwhile, Chery can leverage Renault’s brand recognition and established sales channels to rapidly gain traction, enhance its global brand influence, and lay a stronger foundation for future international expansion in other markets.
