Renault Mulls Car Production in Venezuela

The carmaker already has three plants in Latin America -- in Argentina, Brazil and Colombia.

The Venezuelan industry ministry and Renault have signed a "letter of intention for the installation of a vehicle assembly plant," Renault said in a statement on Monday.

"This signature will enable a feasibility study for local production of vehicles," the company said.

Renault said last week it expected the global auto market to expand by close to 30 percent by 2020 despite the current stagnation in Europe.

Like other carmakers facing a slump in sales to European customers, Renault is trying to tap into emerging markets, where demand remains stronger, with cheaper models. Renault already expects to make half of sales outside Europe this year, ahead of target set for 2016.

On Monday, a Chinese newspaper reported that Renault intends to start car production in China with Dongfeng Motor. This follows a report in the French media last week that said Renault plans to launch two low-cost vehicles, including a Tata Nano rival, in India in 2014.