(Yicai Global) Jan. 24 -- France’s Groupe Renault and Geely Holding Group, China’s largest private carmaker, plan to set up a joint venture to develop, produce, and sell fuel and smart hybrid vehicles in South Korea.

The pair will develop Renault-branded cars based on Geely’s world-class compact modular architecture and hybrid powertrain technologies, they said in a joint statement on Jan. 21. The models expected to roll off Renault-Samsung Motor’s production line in Busan in 2024 will be sold in South Korea and overseas.

Only a few Chinese brands have previously exported core technologies to developed countries, an industry insider said, adding that Geely’s case proves that local technologies are progressing.

The French automaker and RSM will contribute their expertise in design and customer experience and provide cutting-edge technologies to the project, the statement added. Renault and Geely’s respective stakes in the new JV were not disclosed.

When asked whether their tie-up would be extended to the Chinese market to boost the recovery of Renault’s business in the country, a Renault official told Yicai Global that their joint China project is “progressing and will be announced at an appropriate time.”

Editors: Tang Shihua, Futura Costaglione