French carmaker Renault Group has revealed its bold vision to transform its electric vehicle business, Ampere, into a leading force in the European EV market. With ambitions to rival the world’s top EV manufacturers, Renault aims to make billions of dollars annually by selling low-cost electric cars.
Renault’s plans to take Ampere public in 2024 have generated excitement among investors. As part of this strategy, the company unveiled its latest offering, the Legend, a low-cost city car. Renault aims to achieve a 30% year-on-year revenue growth for Ampere between 2023 and 2031.
The announcement has already had a positive impact on Renault’s stock, with a 2% increase following the news. Over the past year, the company’s shares have risen by 7%.
Ampere’s key objective is to reduce the costs of electric vehicles by 40% in the next four years. The ultimate goal is to achieve price parity between EVs and internal combustion engine (ICE) vehicles by 2027/28. To realize this, Ampere plans to introduce four new affordable EV models by 2025, aiming to generate EUR10 billion in annual revenues. The company also aims to expand its lineup to include seven competitive electric cars by 2031, with the target of reaching EUR25 billion in annual revenues.
During an investor presentation, Renault CEO Luca de Meo introduced Ampere’s Legend budget EV, priced below EUR20,000 per year. This move is part of Renault’s strategy to democratize electric cars by offering affordable options. The Legend also presents a significant price advantage compared to Tesla’s EVs.
De Meo emphasized the importance of supporting Ampere as a European alternative to Tesla and China’s leading EV manufacturers. He stated, “Ampere is an ambitious, holistic, and structural response of the European industry to the challenges coming from East and West.”
Renault’s chief financial officer, Thierry Piéton, provided insight into the rationale for an IPO, explaining that it would allow Ampere to accelerate its development without relying solely on Renault Group’s resources. However, Piéton emphasized that the IPO would only proceed when market conditions are favorable and the right valuation for Ampere is ensured.
By driving innovation, affordability, and market expansion, Renault is poised to become a dominant player in the European EV landscape, offering consumers a compelling alternative to established global giants.
1. What is Ampere?
Ampere is the electric vehicle business of French carmaker Renault Group, which aims to become a leading force in the European EV market.
2. What are Renault’s goals for Ampere?
Renault plans to achieve a 30% year-on-year revenue growth for Ampere between 2023 and 2031. It aims to introduce affordable electric vehicle models, reduce costs by 40%, and achieve price parity with internal combustion engine (ICE) vehicles by 2027/28.
3. What is the Legend?
The Legend is the new low-cost city car unveiled by Ampere. Priced below EUR20,000 per year, it aims to “democratize” electric cars and tap into Europe’s growing EV market.
4. When will Ampere go public?
Renault plans to take Ampere public in the first half of 2024, as long as favorable market conditions and the right valuation are ensured.
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