French carmaker Renault is partnering with China's Geely to produce hybrid vehicles in Asian markets, the two companies said on Monday.

The initial core markets will be China and South Korea, according to a framework agreement the two has signed.

In China, they will produce Renault-branded vehicles based on Geely's technologies and manufacturing plants, while Renault will focus on branding strategy, sales channels as well as service.

Renault will introduce Geely's upscale brand Lynk & Co's platforms into South Korea for local vehicle production at its joint venture Renault Samsung Motors, which has been producing vehicles for around two decades.

Both China and South Korea are shifting towards electrification. China expects hybrid vehicles to account for 20 percent of its total vehicle market by 2025 and 50 percent by 2030.

In South Korea, statistics show that 128,000 hybrid passenger cars were sold in 2020, up 68.5 percent year-on-year. They accounted for almost 10 percent of the South Korean passenger vehicle market.

Analysts say the partnership would help the French automaker rebuild its presence in China after it ended a passenger car joint venture with Dongfeng in 2020.

For Geely, sharing its technologies with Renault reduces its development costs, and the deal with such a global carmaker is a sign of its technological competitiveness, they said.

The deal with Renault also marks another step in its globalization campaign and may facilitate the entry of Geely's brands into European markets.

Geely's exports totalled 53,422 units in the first half this year, up 173 percent from the same period last year. Its vehicles are now available in around 30 countries and regions.

Its upscale brand Lynk & Co started to make forays into Europe in late 2020. The brand said it will explore markets in the Asia-Pacific region as well.

In addition to vehicle production mentioned in the framework agreement, the two companies said they will continue to seek more in-depth innovative partnership.

Renault sold more than 2.9 million vehicles globally in 2020 and Geely sold more than 2.1 million in the same year, including more than 660,000 by Geely-owned Volvo.

Geely is one of the most successful Chinese carmakers in terms of globalization since it acquired Volvo from Ford in 2010.

It has a joint venture with Daimler, owns London Electric Vehicle Company and owns a majority stake in British carmaker Lotus. It has helped rejuvenated Malaysian carmaker Proton, of which it bought a 49.9 percent stake in 2017.