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Renault expands Türkiye operations with Boreal SUV production

Renaults new SUV Boreals logo, accessed on July 10, 2025. (Photo via Renault)
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Renaults new SUV Boreals logo, accessed on July 10, 2025. (Photo via Renault)
July 10, 2025 07:44 PM GMT+03:00

French automaker Renault announced plans to manufacture its new SUV model, the Renault Boreal, at its joint facility in Bursa, Türkiye, marking the second major phase of a 400 million euro investment partnership with Turkish conglomerate OYAK.

Second phase of major investment partnership moves forward

The announcement represents a significant step in Renault's "International Game Plan 2027" strategy, originally unveiled in December 2023. Production of the Boreal is scheduled to begin in 2026, with vehicles destined for export to more than 50 countries worldwide.

The decision follows the successful launch of Renault Duster production at the same facility, which achieved a localization rate exceeding 40 percent. OYAK General Manager Süleyman Savaş Erdem said the Boreal project will contribute significantly to both Türkiye's automotive sector and broader economy.

"The Renault Boreal, which will be produced in Türkiye and exported to more than 50 countries worldwide, will make important contributions to both the automotive sector and the Turkish economy," Erdem stated.

File photo shows a close-up of the Renault logo on the grille of a car, accessed on July 10, 2025. (AA Photo)
File photo shows a close-up of the Renault logo on the grille of a car, accessed on July 10, 2025. (AA Photo)

New SUV model targets global markets from strategic location

Renault CEO Fabrice Cambolive described the Boreal as reflecting the company's ambition to deliver high-value vehicles for international markets through contributions from five strategic centers. "Boreal reflects our capacity to fulfill our commitments and turn our vision into reality while continuing the success momentum we started with our SUV models," Cambolive said.

The production strategy spans two continents, with the Boreal manufactured in Curitiba, Brazil for Latin American markets, and in Bursa for more than 50 countries outside Europe. Türkiye's geographic position provides logistical advantages and cost efficiencies for reaching markets across Eastern Europe, the Middle East and Mediterranean regions.

Türkiye transforms from market to production hub

Under its International Game Plan 2027, Renault aims to launch eight new models with investments exceeding 3 billion euros, focusing on international markets. Four of these models will be produced in Türkiye through the OYAK-Renault partnership, according to announcements made at a December 2023 meeting in Türkiye.

The expansion transforms Türkiye from merely a market into a strategic production and export hub for Renault. SUV sales currently account for more than half of Türkiye's total automotive market, creating substantial potential for high-value C-segment SUV models like the Boreal.

The automotive giant targets doubling its revenue per vehicle in non-European markets by 2027 compared to 2019 levels, strengthening its presence in higher value-added C and D segments where Türkiye plays a central role in the company's transformation strategy.

July 10, 2025 07:44 PM GMT+03:00
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