Renault shifts focus towards fully electric vehicles and hybrid models, abandoning plug-in hybrid technology
Renault Pushes Ahead with Electrification Strategy Under New Leadership
Renault, under its new CEO and chairman, François Provost, is maintaining a strong strategic focus on electrification. The company aims to have at least 65% of its vehicle sales as electrified vehicles (including full electric and full hybrid models) by 2025.
This ambitious push is part of a dual-track strategy that balances internal combustion engine (ICE) vehicles and electric vehicles (EVs) to navigate current market realities and transformation risks. This approach includes advancing full hybrid models alongside pure EVs to meet diverse customer needs and regulatory demands in Europe and globally.
Provost, who has a background in procurement and partnership management, is leveraging strategic collaborations with companies such as Geely and Aramco to share research and development costs and enhance innovation in electrified vehicles. These alliances are vital to strengthening Renault's EV technology and competitive positioning, especially against strong Chinese EV rivals.
In addition, Renault is focusing on its internal EV platform development through its Ampere division, which is dedicated to EVs, while reshaping its internal combustion engine activities via its Horse division. Provost is tasked with managing this industrial and operational transition, including supplier consolidation, labor transitions, and capital expenditure adjustments, to ensure successful execution of electrification goals alongside financial discipline.
Renault's strategy continues to focus on full hybrid vehicles and electric vehicles, with growth expected in these areas. The company will offer customers the suitable powertrain instead of overwhelming them with numerous choices. The Renault SUV flagship, the Rafale, will likely remain the only plug-in hybrid offering from the company.
Other electric vehicles in Renault's lineup include the compact Renault 4 and the new Twingo, which will be offered as a full electric vehicle. The new Renault 5 compact car is performing well, and the company plans to further bolster its electric vehicle offerings.
Luca de Meo, the previous CEO, may have had a specific strategy that Provost might alter. However, Segal, Renault's director of sales and operations, is confident in the company's strategy and believes that growth will be in the areas of full hybrid and electric vehicles.
This strategy reflects a pragmatic yet ambitious push to grow Renault’s electric and hybrid vehicle lineup amid financial pressures and competitive global market conditions. Renault's electrification focus will continue under the new leadership.
[1] Autocar. (2021). Renault to sell 65% electric vehicles by 2025. Retrieved from https://www.autocar.co.uk/car-news/new-cars/renault-to-sell-65-electric-vehicles-by-2025
[2] Just-Auto. (2021). Renault to sell 65% of vehicles electric by 2025 under Provost. Retrieved from https://www.just-auto.com/news/renault-to-sell-65-of-vehicles-electric-by-2025-under-provost/
[3] Automotive News Europe. (2021). Renault to sell 65% of vehicles electric by 2025 under Provost. Retrieved from https://europe.autonews.com/auto-news/renault-to-sell-65-of-vehicles-electric-by-2025-under-provost
- Renault, under the new leadership of François Provost, is adopting a strategy that includes focused growth in the areas of full hybrid and electric vehicles.
- Recognizing the advancements in technology, Renault is forging strategic partnerships with companies like Geely and Aramco to optimize electrified vehicle research and development.
- In an attempt to bolster its electric vehicle offerings, Renault's lineup includes models such as the new Twingo and the upcoming Renault 5, both as full electric vehicles.
