In an interview with the German newspaper Die Welt, Renault Group CEO Luca de Meo says that “small cars and LCVs with electric propulsion will soon be cheaper than their ICE counterparts.”
De Meo has pointed out several times already that one of the most significant problems for the breakthrough of EVs is the price. In a recent interview with Le Figaro, alongside Stellantis chair John Elkann, they also requested more time and understanding from European authorities regarding the difficulties they are encountering with the automotive energy transition.
de Meo also criticizes the actual CO2 emission rules within the EU because of the abolition of ICE cars in 2035. He asks for a profound rethinking of the rules regarding the entire lifecycle of a vehicle. “From well to wheel is not the entire truth; it’s only part of it.”
“With an ICE vehicle, 80% of its total CO2 emissions come from using it, for an electric car, this is only 30%. A more comprehensive scheme of rules means that you give other technologies also a chance to survive. With the current rules, the European market for new cars in 2035 will shrink from 13 million to 8 million per year,” de Meo warns.
Cheaper EVs
In the Welt am Sonntag interview, de Meo predicts that the prices for smaller EVs will soon drop to more affordable levels. The electric division of Renault, Ampere, aims to be beneficial in its first year, 2025. ‘If all goes well, we will reach profitability already this year.”
The key to reaching this goal is mastering the cost. “The new electric Twingo will be more affordable than the current Clio with a hybrid engine,” says the CEO. In Belgium, the Clio E-Tech full-hybrid is offered starting at €22,400. “These small EVs will be the first segment where we will reach price parity between ICE and EV cars.”
de Meo adds that another segment where this will happen soon will be the delivery vehicles in the city. “In both cases, a small battery suffices, and that will make them cheaper than hybrid ICE vehicles that have to fulfill the Euro 7 standards.”
Renault 5 Electric under 25,000 euros
Meanwhile, Renault has finally kept its promise of offering a version of the successful Renault 5 Electric that costs less than €25,000. The basic Five version has just arrived on the Belgian market at €24,900. It will feature a 70 kW/95 hp electromotor and an ‘urban range’ 40 kWh battery pack, providing a WLTP range of 312 km. Renault describes this version as being very suitable for use within the city or its suburbs. The car will have a monodirectional AC charger of 11 kW, capable of charging the battery from 15 to 80% in 2 hours and 37 minutes.
In July, an intermediate version will also be available, featuring a 90 kW/122 hp motor paired with the ‘comfort range’ battery pack of 52 kWh, which provides a range of 410 km. In Evolution trim, this car will be priced at €30,900. It will also benefit from automatic air conditioning, a standard heat pump, an 11 kW bidirectional AC charger, and the capability to DC charge up to 100 kW. V2L (vehicle-to-load) is available as an option on this version.
