Renault Group: "Ampere" Launched, Plans to Sell 1 Million EVs by 2031
Established "Power" JV with Geely to supply ICE and HEV powertrains
2024/07/12
- Summary
- EV and software company Ampere launched in November 2023
- Launching Software-Defined-Vehicles (SDVs) in 2026
- 40% cost reduction for next generation C-segment EVs to be launched in 2027/2028
- Ampere's EV lineup
- Ampere's production system: Concentrated in ElectriCity in northern France
- Ampere’s numerical targets
- Established "POWER", set up EV van production company, produced EV Polestar 4 at Renault Korea
- Renault Group's performance: Sales and operating profit grew in 2023
- GlobalData Sales Forecast: Renault-Nissan-Mitsubishi Alliance to sell 7.17 million units in 2027
Summary
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| Five business areas of the next-generation Renault Group (Source: Ampere's Capital Market Day (2023.11.15)) |
In November 2022, the Renault Group announced that it aims to become a next-generation automotive company focused on five business areas. As one area, EV and software company Ampere was launched in November 2023 and announced its plan through to 2031, "Ampere: The European Challenger" at the investor briefing "Capital Market Day." The subtitle of this plan is "Tech Excellence and Operational focus to Democratize EV," and it aims to popularize EVs through superior technology and reduced costs.
Ampere expects B- and C-segment vehicles to account for 75% of the European EV (electric vehicle) market by 2030, and this market is its primary target. The company aims to have four EV models in its lineup by 2025 and seven models by 2031, sell one million units in 2031, achieve sales of EUR 25 billion and an operating profit margin of just over 10%.
The company will launch a software-defined vehicle (SDV) in 2026. SDVs use a centralized E&E architecture and are always connected to the cloud. It will be possible to perpetually upgrade vehicles, increasing their residual value and boosting customer loyalty. This will play an important role in the evolution of EVs from a niche product to a mainstream product in the future. The company will work with Qualcomm Technologies and Google to promote SDV development.
In addition, second generation C-segment EVs to be launched in the 2027/2028 timeframe will be 40% less costly than first generation models and will be priced at the same level as gasoline-powered vehicles. Already, the current Scenic E-Tech's Total Cost of Ownership (TCO) is said to be equivalent to that of a hybrid vehicle.
For ICE and HEV powertrains, one of the five business areas, Renault Group established "Power", a 50-50 joint venture with Chinese automaker Geely. The company aims to build a powertrain production system capable of producing 5 million units in the future.
Related reports:
Nissan: New business plan "The Arc," cutting cost of next-generation EVs by 30% (May. 2024)
European Market: EVs Reach 15% of New Vehicle Sales; Chinese BEVs Increase (Nov. 2023)
IAA Mobility 2023: European OEMs (1) (Oct. 2023)
Renault: EV & Software Company "Ampere" Promotes SDVs (Mar. 2023)
Nissan: Agreement with Renault on 15% mutual investment (Mar. 2023)
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