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The ultra-compact electric car Twizy. (provided by Renault Samsung Motors)

Renault’s ultra-compact electric car Twizy will enter production in South Korea in the second half of 2019.

During a ceremony at Busan City Hall on the afternoon of Dec. 18, Renault Samsung Motors signed a memorandum of understanding with the city of Busan and with car parts supplier Dongshin Motech to work together on creating jobs and relocating the Twizy production facility to Busan.

The Twizy is an ultra-compact electric car that French automaker Renault has been manufacturing at a plant in Valladolid, Spain. Since last year, Renault Samsung Motors has been importing the completed car for sale in South Korea. Thus far, the company has sold all of the approximately 1,500 Twizy units it has imported.

According to this agreement, the Twizy will be manufactured for five years at the Dongshin Motech factory in Busan, with production beginning in September 2019. Dongshin Motech’s yearly production capacity for the Twizy will be upwards of 5,000 cars, which is expected to cover not only domestic sales but also exports to Europe and eventually to Southeast Asia.

Established in 1995, Dongshin Motech is a small but successful car parts maker that produces automobile chassis and battery pack cases for electric cars. “Unprecedented support from Renault Samsung Motors and business-friendly revisions to Busan’s ordinances have enabled us to spur on domestic production,” said Dongshin Motech CEO Lim Chun-u.

Several factors intersected to bring Twizy production to South Korea: the recognition of a Busan factory’s advantages in logistics and price competitiveness and as an export base, along with changes in the environment at Renault’s factory in Spain and radical reform underway at the company.

The signing ceremony on Tuesday was attended by Renault Samsung Motors CEO Dominique Signora and Busan Mayor Oh Keo-don, who will be discussing an administrative and financial support package to help Twizy make a soft landing in the city and promote its sales. Other topics for discussion are expanding the Twizy supply through car sharing and other measures and incorporating the model into the Youth Hope Car Program, which is being operated on a trial basis.

The city of Busan expects that the opening of the Twizy production facility will help promote economic growth in the region by creating new jobs and expanding exports. Renault Samsung Motors is planning to use Busan as a base for expanding its export market.

Signora expressed his appreciation for the efforts made by the South Korean government. “Some of the biggest factors in the successful bid for Twizy production were the Ministry of Land, Infrastructure and Transport’s adjustment of the legal code, the Ministry of Environment’s formation of an incipient market and the Korea Post’s adoption of small electric cars,” Signora said.

By Hong Dae-sun, staff reporter

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