Renault Korea to balance exports, domestic sales for sustainable growth: CEO

Renault Korea CEO Stéphane Deblaise speaks during an interview with The Korea Times at the carmaker's Renault Seongsu flagship store in Seoul, April 4. Korea Times photo by Choi Won-suk

Renault Korea will achieve sustainable growth by “balancing exports and domestic sales” in the hyper-competitive automotive market here, its CEO Stéphane Deblaise said during a recent interview.

The carmaker made a surprise comeback last year with the successful launch of its flagship Grand Koleos SUV — the first new model the company introduced for Korea after a four-year hiatus.

The head of the French carmaker’s local subsidiary expressed confidence in extending its winning streak by placing a strategic focus on spurring growth both in exports and domestic sales on an equal footing.

“I think it is most ideal to be able to sell 50 percent of each of the total sales in the domestic and export markets,” he told The Korea Times at its flagship store in Seoul, April 4.

Unlike most other foreign-based carmakers here, Renault Korea has its own production lines in the nation’s southeastern port city of Busan. The facility manufactures its vehicles for customers here and abroad.

Renault Korea CEO Stéphane Deblaise smiles as he shares the firm's strategy during an interview at Renault Seongsu in Seoul, April 4. Korea Times photo by Choi Won-suk

Buoyed by the Grand Koleos' robust sales, Renault Korea’s overall sales are on a solid recovery track. According to data from the carmaker, it sold a total of 8,256 vehicles in March, up 15.7 percent from a year earlier. Of particular note was strong domestic sales growth of 200 percent out of the total sales figure.

This was driven by his unwavering sales philosophy for the domestic market. Stéphane Deblaise took office in March 2022, and spearheaded the carmaker’s sales rebound by initiating the so-called Aurora project. Grand Koleos is the first chapter of the project.

“Renault Korea believes that if it is not successful in the domestic market, there is no reason to exist in Korea anymore,” he said. “Brands that do not maintain the adequate sales volume in the domestic market will no longer be able to find meaning in the market.”

The carmaker sold a total of 13,814 vehicles here in the first quarter, up 155 percent from the previous year, and the strategic SUV accounted for 83 percent of the total sales.

The Renault Korea head also pinned hopes to gradually enhance its brand image even throughout next year when it will unveil the Aurora 2 project.

“The Aurora 2 is being developed and expected to be unveiled in the first half of 2026,” he said. “The Aurora 2 will be a coupe-type SUV with an eye-catching design. We expect that the Aurora 2 can enhance Renault’s brand image in the Korean market along with Grand Koleos, which already has a strong position in the market.”

Renault Korea CEO Stéphane Deblaise, second from left, introduces the firm's growth strategy during an interview at Renault Seongsu in Seoul, April 4. Korea Times photo by Choi Won-suk

EV strategy

Renault Korea is in talks with its French headquarters to release its Scenic E-Tech electric vehicle (EV) sometime in the latter half of this year.

Deblaise said the carmaker will also jump into the global paradigm for EVs by embracing the diversity of powertrains.

“EVs still face many challenges ahead in areas such as (high) battery prices and insufficient charging infrastructures,” he said.

Despite such setbacks, he added Renault Korea will offer local customers all four powertrain options: internal combustion engines, hybrids, plug-in hybrids and EVs.

“EVs are the best with zero emissions, followed by plug-in hybrids, hybrids and internal combustion engines, but in many other criteria, each powertrain has its own strengths,” he said.

Regarding its potential rivalry with Hyundai Motor and Kia — two monopolistic brands in Korea — he shared the carmaker's strategy of attracting demand from customers seeking diversity.

“The Korean auto market has a unique structure dominated by one huge car manufacturer (Hyundai Motor Group),” he said. “The two auto brands under the group account for most of the domestic total sales, an unusual market configuration not seen elsewhere.”

Renault Korea's Grand Koleos SUVs / Courtesy of Renault Korea

Even if this is the same for the Korean EV market, Renault Korea will “act as another option” to provide diversity to domestic customers, according to him.

“The Renault Scenic is the latest EV to be named the 2024 European Car of the Year, which has already proved competitiveness. “Its excellent design and interior space are the strength of the Scenic, along with its reliable batteries sourced from LG Energy Solution,” he said.

Renault Korea is also scheduled to unveil a large electric SUV in 2027, as part of its Aurora 3 project. It will also be produced in its Busan plant, and is expected to become the pinnacle of its electrification drive.

“It is true that it will be 100 percent pure electric car,” Deblaise said.

However, he did not share details for the upcoming model.

“The Aurora 3 project is not finalized yet, but we are still working on it to concrete our future strategy and preparations for the project are underway normally,” he said. “Details such as its specifications and design have not been decided yet.”