Renault Korea Automobile has reached an agreement to produce the all-electric Polestar 4 at its Busan plant starting in the second half of 2025, as part of its next step in expanding its role as a global export hub, following the launch of its own hybrid model in 2024. The photo shows the Renault Korea Busan plant. (Image provided by Renault Korea)
BUSAN, Dec. 31 (Korea Bizwire) — Renault Korea announced plans to outfit its Busan plant with electric vehicle (EV) production facilities as it gears up to manufacture the Polestar 4 midsize electric SUV for export to North America starting in the latter half of 2025.
This marks the plant’s first transition to EV production, with industry speculation mounting about the company’s plans for its own EV models.
Renault Korea is investing heavily in its Busan factory, updating key facilities such as assembly, body, and painting shops to accommodate EV production.
During January 2025, the plant will undergo upgrades, including chassis hangers and sub-lines for battery installation, temporarily halting operations for a month before resuming production in early February.
Renault Korea’s new hybrid SUV Grand Koleos models are showcased at the Busan International Mobility Show on June 27, 2024. (Image courtesy of Yonhap)
Dual Strategy: Contract Manufacturing and In-House EV Development
While the initial focus is on Polestar 4 production, Renault Korea is positioning the Busan plant as a global hub for EV manufacturing.
The facility’s mixed assembly lines, capable of producing up to eight models across four platforms, offer flexibility for integrating new vehicle types, including heavier EV models requiring reinforced infrastructure.
The company’s long-term strategy also involves its first proprietary EV, codenamed Aurora3, a compact SUV slated for release in South Korea by 2027.
With the Busan plant identified as a key global EV production site by Renault Group, Aurora3 is expected to be the first EV model independently manufactured at the facility.
Renault Korea will complement its local production efforts by importing other EV models, including the Renault Scenic E-Tech, a midsize electric SUV, from France in 2025.
This photo, provided by Renault Korea Motors Co., shows company officials posing for a photo during a celebration for the first unit of the Grand Koleos at its manufacturing plant in Busan, some 320 kilometers southeast of Seoul, on July 15, 2024. (Image courtesy of Renault Korea)
Significant Investment Signals Commitment to EV Transition
In March 2024, Renault Korea signed an agreement with the city of Busan, pledging to invest 118 billion won ($89 million) by 2028 to transform the plant into a cutting-edge EV production base.
Industry observers view this as a signal that Renault Korea is unlikely to rely solely on contract manufacturing and will expand its in-house EV production capabilities.
“The substantial investment in the Busan plant indicates Renault Korea’s ambition to scale its EV production, both through partnerships and proprietary models,” an industry insider said.
Renault Korea’s move reflects broader trends in the automotive industry as manufacturers transition to EVs to meet global sustainability goals. With Polestar 4 production as a starting point, the Busan plant is poised to become a key player in Renault’s global EV strategy.
Kevin Lee (kevinlee@koreabizwire.com)
