How Renault Aims to ‘Democratize’ the EV Market in Europe By 2026

Published  November 17, 2023   0
S Staff

Overall, there will be around 40 percent price reduction in manufacturing costs by 2027-28

The French global car-maker Renault is now aiming for new strategies for its newly formed combined software and electric vehicle business. According to the company, the strategy is expected to democratize the battery backed cars market in Europe, which in turn would make the price of EVs the same as that of conventional gasoline cars. 

The exclusive report of Associated Press stated that by the end of 2026, the company is looking forward for a software driven car based on an overarching software package, which will be utilized for various electric car models and also collates scattered chipsets in a central architecture that will be connected continuously on a computer networks, such as cloud. Therefore, the users will have a seamless over the air software updates and an impeccable customer retention in terms of cars servicing.

Overall, there will be around 40 percent price reduction in manufacturing costs by 2027-28. The report also added that combining both software and EVs would decrease huge costs and lesser development period. For Renault, it is an urgent need of the hour as the European car-makers are facing cutthroat competition from the US rivals Tesla and the Chinese EV manufacturers who are entering the European market with a huge growth rate. 

The company further mentioned that the cost would decrease more as the battery technology improves with time. During the investor day presentation, CEO Luca de Meo said, "Carving out electric cars and software will mean that technology and automotive engineers will find a common language... and combine the best of tech and automotive."

Luca stated that its EV division Ampere will help in crafting more strategic and independent decisions that can swiftly find solutions to the changing technology. Renault is also willing to sell most of its shares in Ampere which got separated on Nov 1, 2023 through an initial public offering, but the majority of shares will be grabbed by Renault. Last, but not least, Renault speculates that Ampere will have a yearly revenue of 10 billion euros by selling four cars, which would escalate to 25 billion euros by the end of 2031 with seven cars.