XM3 Export Success and China HEV Joint Venture... Renault Samsung's Consecutive 'Green Lights'

XM3, Export Volume Soars Following Positive Reception in European Market
New HEV Model to Launch in 2024 with China Geely Holding Group

[Asia Economy Reporter Yu Je-hoon] Renault Samsung Motors, which had been suffering from chronic lack of work, is finally smiling. This is because the European export of its main model XM3 is running a hit streak, and it has achieved securing future growth engines through a joint venture with China's Geely Holding Group.

According to the industry on the 22nd, Renault Samsung's compact sports utility vehicle (SUV) XM3 (European export name 'New Arkana') exported a total of 56,719 units last year. This is an increase of a whopping 6,139.7% compared to the same period last year. The export volume of the XM3 accounts for about 79% of the total export volume (71,673 units).

This achievement of the XM3 is due to favorable reviews in Europe, its main export region. Last year, the XM3 was highly evaluated locally, being selected as Spain's 'Car of the Year 2022' for the first time in 25 years as a Renault brand vehicle. In addition, it was selected as 'Company Car of the Year' in Slovenia and was a final candidate for Car of the Year in Romania.

Renault Samsung has continuously suffered from a lack of work since the end of Nissan Rogue consignment production in 2019. In February last year, it implemented a 'Survival Plan' including voluntary retirement and simultaneously lowered its production target from 150,000 units to 100,000 units, about one-third of the previous level. However, thanks to the export success of the XM3, the cumulative production volume last year exceeded the original target at about 128,000 units.

Recently, it has also achieved results in future growth areas by deciding to launch a hybrid model in 2024 through a joint venture with China's Geely Holding Group. According to Renault Samsung, Renault Group and China's Geely Holding Group reached a final agreement yesterday on a mutual cooperation plan centered on launching a joint model for the Korean market.

The joint model of the two companies will be introduced by Renault Samsung researchers based on Geely Holding's Volvo CMA platform and the latest hybrid technology. Geely Holding's CMA platform is characterized by high flexibility applicable to internal combustion engines, hybrids, plug-in hybrids, and pure electric vehicles. Representative models applying this platform include the Volvo XC40 and C40.

In particular, since both sides agreed to not only launch eco-friendly models domestically but also explore ways to enter the global market based on this, the export market is expected to be targeted in the future. This is a considerable boon for Renault Samsung, whose production volume dropped to around 100,000 units after the end of Nissan Rogue consignment. An industry insider said, "As shown in the export success of the XM3, it is crucial that the new model to be released in 2024 also demonstrates sufficient marketability and quality."

This content was produced with the assistance of AI translation services.