French automaker Renault is in talks with Chinese partner Geely to finalise a deal for the expansion of their partnership into Brazil, reported Reuters citing three sources.

The two companies, which established a joint venture focused on thermal engines in 2024, have already begun selling vehicles produced in a jointly-owned South Korean factory.

The companies are now looking to announce their Brazil expansion later this month, the sources familiar with the matter told the publication.

Under the proposed deal, Geely would leverage Renault's Brazilian retail network to sell Geely-branded vehicles exported from China as early as this year.

Additionally, Geely is expected to acquire a minority stake in Renault Brazil and utilise the Curitiba plant for vehicle assembly.

The expansion aligns with Renault’s broader strategy to lessen its dependence on the European market.

For Geely, the partnership would provide an opportunity to expand beyond its primary export market, Europe, amid growing trade barriers imposed by countries such as the US, Canada, and the European Union on Chinese-made vehicles.

While technical details are still under consideration, there is potential for Geely to establish a multi-energy platform at the Renault plant to produce a range of vehicles, including gasoline, hybrid, and pure EVs, one of the sources said.

Recently, it was reported that Geely signed a preliminary agreement with Pakistan’s HRL Engineering Group and Capital Smart Motors (CSM) to assemble and sell its Farizon commercial vehicles in the country.