15:21 02-10-2025

Chery may build cars under the Renault badge in South America

Chinese automaker Chery may enter the South American market under the Renault brand. Bloomberg reports that the two companies are discussing joint vehicle production at the French group’s plants in the region. The logic is clear: teaming established manufacturing and distribution with cost-competitive tech offers a faster route to scale than building everything from scratch.

Early outlines of the plan suggest Chery would invest in the project and contribute its technologies, while Renault would provide factory capacity and sales channels. One key site under consideration is Renault’s plant in Envigado, Colombia, where models with traditional internal combustion engines are planned. Most vehicles would be sold under the Renault badge, with a smaller portion carrying Chery’s own branding.

Another option on the table is assembling plug-in hybrid pickups at Renault’s Córdoba plant in Argentina, with the French company also handling distribution. Talks remain at an early stage, and no final agreement has been reached—a reminder that timelines and product mixes could still shift.

This wouldn’t be Renault’s first tie-up with a Chinese manufacturer in the region. In Brazil, the company already collaborates with Geely to produce hybrid cars. According to Bloomberg’s sources, a potential deal with Chery would not affect the existing Geely alliance, pointing to a flexible, multi-partner approach rather than a single-track strategy.

If the plan comes together, Renault would gain access to more affordable models suited to local demand, while Chery would tap into a mature infrastructure and a familiar badge. That combination could accelerate the spread of Chinese-built cars across Latin America—and could even open doors to a US market entry. In price-sensitive segments, the blend of competitive costs and strong distribution often matters more than where a badge originates.