Renault has announced its partnership with a Chinese engineering company to develop affordable electric vehicles in order to compete with Chinese automakers. The French automaker aims to release a new version of its Twingo car priced below 20,000 euros ($21,676) within the next two years.
Renault’s Ampere electric vehicles division is leading the development of the new Twingo model, with collaboration from a Chinese engineering partner. This collaboration aims to enhance development lead time and reduce costs. While the styling and advanced engineering of the car will be done in France, production will take place in Europe, as originally planned.
This decision comes after Renault and Volkswagen ended talks earlier this month regarding the joint development of an affordable electric Twingo model. However, Renault’s choice to partner with a Chinese company for this project was not influenced by the termination of discussions with Volkswagen.
The move by European automakers towards producing smaller electric vehicles under 20,000 euros is driven by the goal of competing with Chinese brands like BYD. This strategy aims to tap into the growing demand for cheaper electric vehicles while also challenging the dominance of Chinese manufacturers in this market segment.
By collaborating with a Chinese partner, Renault can leverage their expertise in developing affordable electric vehicles and gain insights into the Chinese market. This partnership is crucial for Renault to stay competitive against Chinese automakers, who have already made significant progress in the electric vehicle market.
Furthermore, the alliance with a Chinese engineering company allows Renault to benefit from cost-efficient manufacturing processes in China. This could potentially result in a more cost-effective production of the new Twingo model, enabling Renault to offer an affordable electric vehicle option to consumers.
In conclusion, Renault’s partnership with a Chinese engineering company represents a strategic move by European automakers to develop smaller and cheaper electric vehicles. By forming alliances with Chinese companies, European automakers can tap into their expertise and gain a competitive edge in the growing market for affordable electric vehicles. This collaboration will not only help Renault compete with Chinese brands but also enable them to offer consumers an enticing electric vehicle option priced below 20,000 euros.
