Renault was once a pioneer in the electric vehicle market with alliance partner Nissan, but is now being overtaken by new rivals. Last year, the French carmaker sold nearly 18,000 Megane electric vehicles in its home market, while Tesla is the leader in the French electric vehicle market with 25,000 Model 3 and more than 37,000 Model Y sold, according to data firm AAA. In addition, for the full year 2023, the Chinese MG brand sold 20,000 MG4 vehicles in the French market.

Segal said, “The Renault brand’s main focus in 2024 will be a renewed offensive in the electric vehicle segment.” Renault’s counterattack includes the launch of a new electric vehicle, the Scenic, and the arrival of the R5 in the second half of the year, with both models taking over from the Zoe and Twingo.

Renault did not follow Tesla’s policy of price cuts last year, but in January this year it also decided to cut the starting price of the Megane by 10 per cent, from €38,000 to €34,000. However, the Tesla Model 3 and MG4 do not qualify for French government subsidies following the country’s new subsidy policy for electric vehicles, so the Megane is much cheaper than the Tesla Model 3, and even a bit cheaper than the MG4 after accounting for subsidies.

Segal said, “There is more competition in terms of selling price or leasing than there was a few months ago, and it will take a few more years for the electric vehicle market to stabilise.”