Automotive News Europe — 2024-05-30
Automotive Industry
Renault's move to partner with a Chinese peer will teach the company how to move more quickly on EV development.
Renault will partner with a Chinese engineering company to develop a new-generation Twingo electric minicar priced below €20,000 ($21,676).
"The development of the car will be done with a Chinese partner to improve our development lead time and costs," a Renault spokesperson said.
The styling and advanced engineering project is being done in France, and production will be in Europe, the spokesperson added.
The project is being led by Ampere, Renault's electric vehicles division.
Earlier in May 2024, Renault and German peer Volkswagen ended talks to jointly develop an affordable electric version of the Twingo.
Renault said its decision to choose a Chinese partner for the Twingo came independently of that earlier decision concerning VW.
VW said this week that it will build battery-electric cars priced at €20,000 in Europe without a partner, relying on a high degree of localization in Europe.
Renault CEO Luca de Meo unveiled plans for the electric Twingo late 2023. The vehicle will be built in Europe, possibly in Slovenia, de Meo said during the company’s shareholder meeting in May 2024. The current Twingo is built at Renault's plant in Slovenia.
Renault's move to partner with a Chinese peer is meant to teach the company how to move more quickly on EV development, according to people familiar with the situation.
Western European manufacturers are increasingly relying on engineers in lower-cost countries to cut expenses. While engineering in China is not necessarily cheaper, it's where the bulk of EV technology breakthroughs currently are coming from, one of the people said.
Europe's automakers are under pressure to update their electric lineups just as slow economic growth and waning subsidies weigh on EV demand. Meanwhile, Chinese brands are expanding in the region with cheaper models. BYD plans to offer its Seagull hatchback in 2023 at a price below €20,000.
Stellantis plans to offer EVs from China’s Leapmotor in nine European countries starting in September 2024. It will be introducing a cheaper version of its Citroen e-C3 early in 2025.