Renault Plans to Cut Electric Vehicle Production Cost by Half

Source: Gasgoo

Introduction

Renault plans to list its electric vehicles unit Ampere next year, targeting a valuation of up to 10 billion euros ($10.8 billion), with both Nissan and Mitsubishi confirming major investments in the unit.

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Renault Group plans to achieve its goal of halving the cost of producing electric vehicles by 2027 by deploying artificial intelligence technology as competition intensifies to build affordable cars for the mass market, Bloomberg reported.

 

The automaker also wants to reduce vehicle development time from three years to two, the company said in a statement, in order to make its manufacturing base more competitive.The measures should also cut the cost of internal combustion engine vehicles by 30 % over the same period.

Image source: Renault Group

The measures are part of a major transformation for Renault Group, which this year reshaped its decades-long alliance with Nissan Motor Co. Renault plans to list its electric-vehicle unit Ampere next year, targeting a valuation of up to 10 billion euros ($10.8 billion), with both Nissan and Mitsubishi confirming major investments in the unit.

 

Renault already uses more than 300 AI apps to track car parts and enhance quality control, and now plans to increase that number to 3,000 by around 2025 or 2026. The company has created an industrial meta-universe that has already saved it €270 million this year, mainly through predictive maintenance of equipment.

 

Reducing electric vehicles production costs by 50 percent will be an important step in competing with Chinese manufacturers entering the European market, said Luca de Meo, chief executive of Groupe Renault, which will launch the much-anticipated Renault 5 next year priced at 25,000 euros and plans to launch a new electric version of the Twingo for less than 20,000 euros from 2026.

 

As part of the industrial transformation announced on December 7, Renault will produce four new models at its Bursa plant in Turkey over the next five years. In addition, the company, which has halved its capital expenditure over the past four years, will be able to launch 12 new models next year, according to the statement.

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