French automaker Renault has reportedly turned down two investment offers from Chinese electric vehicle giant BYD. The Chinese company sought a stake in Renault in exchange for sharing its battery and EV technology and gaining access to Renault’s European factories.
Two Investment Proposals from BYD
According to French business daily Les Echos, BYD approached Renault twice in recent years with investment offers. The first offer came around 2023, when Renault was under CEO Luca de Meo. BYD proposed becoming a Renault shareholder rather than a simple joint production partner.
The second attempt was in autumn 2025, following high-level talks involving BYD’s Europe head Stella Li and French President Emmanuel Macron. This deal would have involved Renault receiving BYD’s battery and plug-in hybrid technology and possibly battery production support. In exchange, BYD wanted access to Renault’s factory capacity in Europe, potentially to avoid EU tariffs on Chinese-built EVs.
Renault’s Position and Existing Partnerships
Renault declined both offers. The company already has an operational partnership with Chinese brand Geely, including manufacturing collaborations in South Korea and Brazil.
- Joint production in Busan, South Korea, and Curitiba, Brazil
- Horse Powertrain joint venture producing combustion engines for Renault, Dacia, Volvo, and Nissan
Renault’s close relationship with Geely and its cautious approach to foreign partnerships in its core European market presumably influenced the decision to reject BYD.
Context: Chinese Automakers Eye European Production
Chinese EV makers, including BYD, have intensified efforts to establish production inside the EU. This push comes ahead of tighter EU rules on “Made-in-Europe” content aimed at protecting local jobs and industry. These rules will tie incentives and investment approvals to local manufacturing targets.
By securing factory access in Europe, Chinese companies could avoid steep EU tariffs on imported EVs, which can reach up to 45 percent. Several Chinese automakers have signed deals to use or build factories in Europe in recent years.
Why This Matters
Renault’s refusal of BYD’s partnership offers highlights the sensitive balance European automakers face between cooperating with Chinese firms and protecting their own market position. As EU regulations push for more local content in EVs, the relationship between European carmakers and Chinese investors will be crucial for the sector’s competitiveness and long-term growth.
Source: autonews.com