Renault and China’s Geely said on Tuesday they will invest 3.8 billion reais ($714 million) in Brazil to jointly develop new vehicle models, aiming to strengthen their position in South America’s largest auto market.

The companies said in a statement that part of the investment will support Geely’s new zero-emission and low-emission platform, which will underpin two new models scheduled to go into production in the second half of 2026. The remaining funds will be used to refresh an existing Renault model next year and launch another new model in 2027.

Earlier this month, Geely agreed to acquire about 26% of Renault’s Brazilian unit, gaining access to Renault’s local distribution network and engineering center. The deal is expected to help Renault accelerate capacity expansion at its Curitiba plant, while allowing it to tap Geely’s multi-energy vehicle manufacturing platform.