Key Points:
- Renault Korea Motors plans to invest over $523 million by 2027 to convert its Busan plant into an eco-friendly car manufacturing hub.
- The project, named Aurora 1 and 2, will focus on producing hybrid and electric vehicles to rejuvenate Renault’s business.
- CEO Stéphane Deblaise aims to introduce the project’s first outcome, a mid-size hybrid SUV named Aurora 1, later this year.
- Renault Korea and its French parent company to develop next-generation EV models, with a potential additional investment of over 1.5 trillion won by 2027.
Renault Korea Motors Co. has unveiled ambitious plans to revitalize its business. By 2027, the company will invest over 700 billion won ($523 million) to convert its auto plant into an eco-friendly car manufacturing hub in Busan, South Korea.
In a memorandum of understanding signed with the Busan Metropolitan City government, Renault committed to establishing a future mobility center in Korea’s second-largest city. The transformation will focus on producing hybrid and electric vehicles to meet evolving market demands.
Aurora 1 and 2 project will see an initial investment of 700 billion won to construct hybrid car research and development facilities and manufacturing infrastructure. A significant portion of this investment, 118 billion won, will be allocated to replacing existing production lines with hybrid manufacturing capabilities by 2027.
Renault Korea aims to break out of its prolonged slump, which has persisted since 2020 due to a lack of attractive new models. With the Aurora project, spearheaded by CEO Stéphane Deblaise, the company anticipates a resurgence. The project’s first outcome, a mid-size hybrid SUV named Aurora 1, is scheduled for release later this year, with plans for domestic and international markets.
Renault Korea is contemplating a further investment of around 1.5 trillion won to manufacture pure electric vehicles at the Busan plant. Talks are ongoing with the French parent company to develop next-generation electric vehicle models following the completion of the Aurora project.
Renault Group’s Vice Chairman Guido Haak has strongly supported the Busan plant’s transformation into a global manufacturing hub for electric vehicles. Designating the facility as one of its five global manufacturing hubs, Renault aims to capitalize on Korea’s skilled workforce and strategic location.
