Renault recasts Busan plant as export hub for Europe, Latin America as U.S. route closes

PARIS — Renault is recasting its Busan plant as an export hub for Europe and Latin America, abandoning plans to supply North America after the Donald Trump administration cracked down on Chinese-linked vehicles.

"The Busan plant can be the best level of the group on this C and D segment to be exported all over the world," said Ivan Segal, global sales and operations director for the Renault brand on the sidelines of the Paris Motor Show 2026 at the Paris Expo Porte de Versailles exhibition center on Monday.

"In some Latin American countries, like Colombia, the FTA agreement gives us a really good opportunity to export cars from Korea to Colombia, and of course, we expect to have other opportunities for Europe."

Segal's comments come amid concerns that the Busan plant is losing its standing within the group after Renault dropped plans to build the electric SUV Polestar 4 there for the North American market. Polestar, owned by Chinese carmaker Geely, finds itself entangled in Washington’s tariffs and faces U.S. restrictions on connected-car technology, but has since found strong demand in Europe.

The plant still has plenty of work ahead, he added, as Renault plans to start building a hybrid there for the Korean market in the second half of 2027 and an electric vehicle in 2028.

Segal also said Renault must “learn” from its Chinese rivals and try to “catch up" instead of "escape" from reality.

"The first [lesson] is not to escape from the reality of having a Chinese brand competitive, but it is to learn why they are so competitive," he added, giving an example of the new Twingo, which used Chinese methods to cut the development period from four years to two.

Although Chinese brands have quickly grown to about 12 percent of the European market, Renault has also gained market share. Segal credited a steady flow of new models, a broad range of powertrains and a push into electrification that has not slowed.

“First, we've got a new lineup, and we've got the right powertrains in Europe. Five years ago, we put a lot of focus on having electrified solutions in one hand, full hybrid solutions in the other, and a range of [multi-energy] solutions," Segal said.

The French carmaker on Monday unveiled the Renault E-Space Concept at the 2026 Paris Motor Show, which drew more than 100 exhibitors this year, leaving little doubt about how much Renault is staking on EVs and forward-looking design.

A reimagining of the Espace, which debuted in 1984, the concept stretches 4.70 meters (15.42 feet) with U-shaped light strips that trace its contours front and rear, and an illuminated diamond logo sits among pixel-like lighting graphics on the nose.

Inside, six identical swivel seats stand in three rows on a flat floor. They pivot slightly to ease entry and, in some layouts, gather around the center console, which can turn into a large table. The pitch is less a new silhouette than a new idea of how a cabin might be lived in.

After years of shrinking, the Paris Motor Show has grown again as global automakers fight to hold their ground against Chinese EV makers gaining ground in Europe.

While European brands are again using the show to unveil new models and lay out their plans, Korean automakers are raising the stakes, as Europe has become a strategic foothold as they try to diversify their exports, lessen their reliance on China and weather trade barriers in the United States and elsewhere.

Hyundai Motor returned after an eight-year absence with its latest Bayon, a small SUV for the European market designed to take on the Ford Puma and the Renault Captur. It also comes with N Line, a performance variant.

The Bayon is topped with a 1.0-liter engine, and a hybrid version is expected to follow in 2027, with production beginning at Hyundai’s plant in Izmit, Turkey, before the end of the year.

The Korean automaker also brought the redesigned Tucson to Europe for the first time, after the SUV made its world debut in New York on Oct. 1, and unveiled a sportier N Line version. Tucson is Hyundai’s best-selling model in Europe.

The hybrid model achieves 242 horsepower, while the plug-in hybrid achieves 288 horsepower and uses a 17.1-kilowatt-hour battery. Hyundai estimates it can travel up to 81 kilometers (50 miles) on electricity alone, though that figure has not yet been certified.

Hyundai can manufacture about 580,000 vehicles per year in Europe and plans for more than half of them to be fully electric.

Much of that rests on the Ioniq 3, a small electric car that went into production in Turkey in August.

Hyundai affiliate Kia revealed hybrid versions of its K4 compact car and the redesigned Seltos SUV, along with high-performance GT versions of its EV3, EV4 and EV5 electric models.

Kia’s registrations in Europe rose 9 percent in the first eight months of the year, driven by hybrid sales, making it the fastest-growing of the region’s 10 largest car brands, with a 4.1 percent market share.

The Seltos Hybrid is Kia’s first model with electric all-wheel drive. The K4 Hybrid, making its European debut, goes into production on Thursday.

BY SARAH CHEA   [[email protected]]