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The Renault Group will invest $700 million in South Korea as its key export hub, according to its CEO, Luca de Meo.
Renault Korea has a sole plant with an annual capacity of 300,000 units in Busan and has no plan to expand the facility.
The Renault CEO said the Busan plant will serve as the export hub of mid- and large-sized vehicles for the French company.
Renault Korea sold 123,373 automobiles in total between January and September, a 36 percent increase from 90,552 during the same time last year.
The business projects that it will sell over 160,000 automobiles in 2022 in the fourth-largest economy in Asia, a significant increase from the 116,166 vehicles it sold in the previous year.
To boost sales, Renault Korea recently added the XM3 gasoline hybrid model to its roster, which also includes the QM6 SUV, SM6 sedan, and the Twizy electric vehicle.
Renault Korea will collaborate with Geely Automobile Holdings, the largest privately held automaker in China, to introduce a mid-sized hybrid model to the market in 2024.
In May, Geely said it will acquire a 34.02 percent stake in Renault’s Korean unit.
