Renault announced on Wednesday that it will invest €3 billion by 2027 to launch eight new models and boost sales of electric vehicles outside Europe. The move is part of the French automaker's global strategy to reduce its reliance on the European market and become more profitable.
Renault has become increasingly dependent on Europe in recent years, following the loss of Russia, its second-largest market. In the first nine months of 2023, nearly 69% of Renault's sales came from Europe, up from 63% in the same period last year.
"With our product updates taking effect in the European market, we now want to make the Renault brand more global and more profitable," said Fabrice Cambolive, CEO of the Renault brand.
The eight new models that Renault plans to launch outside Europe by 2027 will include a mix of electric vehicles, SUVs, and sedans. The company said that electric and hybrid cars should account for a third of its sales outside Europe by 2027.
Renault is already making progress on its electrification plans. In the first nine months of 2023, sales of electric vehicles in Europe accounted for 22% of Renault's total sales. The company is aiming to increase that share to 35% by 2025.
Renault's investment in new models and markets is a sign of its confidence in the future. The company is betting that the global demand for electric vehicles will continue to grow in the coming years. Renault is also hoping that its new models will help it to capture market share in emerging markets such as India, China, and Latin America.
The news of Renault's investment was welcomed by analysts. "This is a positive step for Renault," said Daniel Levy, an analyst at Berenberg. "It shows that the company is committed to its global strategy and is investing in the right areas."
However, some analysts warned that Renault will face stiff competition in the global electric vehicle market. "Tesla is still the dominant player in the global electric vehicle market," said George Galliers-Pratt, an analyst at RBC Capital Markets. "Other automakers such as Volkswagen and BMW are also investing heavily in electric vehicles."
Despite the challenges, Renault is confident that it can succeed in the global electric vehicle market. The company has a long history of innovation and a strong brand presence. Renault is also backed by the resources of its parent company, Nissan.
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