The new joint venture will benefit from the synergies of the intellectual properties of both companies in developing future powertrain technologies. Although the new company will be focusing on primarily manufacturing internal combustion engine (ICE) engines, it is expected to drive new innovations in hybrid and electric vehicle (EV) powertrains and will be ready to provide end-to-end powertrain solutions to major automakers in three continents.

“Owning an electric vehicle has become a new fad all over the world, fuelled by increased consumer interest in sustainable living and the introduction of cars with greater driving ranges. Additionally, strict CO2 targets established by various governments for automakers, increased investments in charging networks by a variety of automakers and third-party companies, and an aggressive push by governments through catalyst programs like subsidies are all contributing to the demand for decarbonized automobiles.

“As per GlobalData estimates, the global electric vehicle market, including battery electric vehicles (BEVs) and hybrid vehicles (HEVs), will reach 103.5 million units by 2030, recording a compound annual growth rate (CAGR) of 3.1% during 2022-30. Considering the market potential of the decarbonized automobile and the growing global electric vehicle market, the new Renault Group and Geely company will pose a head-to-head challenge to global automobile companies like BYD and Tesla in the long run.”