Geely Holding Group and Geely Automobile (HKG:0175) have acquired a 26.4% stake in Renault's Brazil unit, expanding their global partnership into South America, according to a joint statement on Monday.

Renault Group will remain the majority shareholder and continue to consolidate the Brazilian unit, while Geely gains access to its Sao Jose dos Pinhais industrial complex and sales network.

The partnership will produce both Renault and Geely-branded zero and low-emission vehicles for the Brazilian market, the statement said.

The collaboration will see Geely's EX5 electric SUV distributed through Renault do Brasil's dealership network and future Renault models built on Geely's GEA new energy platform.

Renault said the move strengthens its international expansion strategy in Latin America, while Geely called it a "win-win" opportunity to leverage global technology scale.