Renault delays the stock market introduction of its all-electric subbrand Ampere to the first half of 2024. The French car maker points to a less-than-ideal market climate, but the postponed launch of the all-electric R5 is also playing its part.

Renault is pushing forward with a revolutionary plan to launch 18 new models by 2025, as part of the Renaulution strategy put in place by CEO Luca de Meo. Updating on the progress, de Meo announced that his management decided to bring the Ampere brand to the stock market next year – instead of a previously announced ambition for 2023.

Adverse market conditions

Renault’s top management believes market conditions will have improved, as auto manufacturers today face rising inflation, consumer spending restrictions, and aggressive price cuts from competitors such as Tesla. According to the news agency Bloomberg, the launch of the revived R5 has helped forge the decision, as the launch of the model has been pushed back with a couple of months.

The good news is that de Meo is confident about Renault’s profits. In contrast to analyst’s predictions, which pinpointed the operational margin at 6.2%, the CEO predicts a margin between 7 and 8 per cent. Operating cashflow is expected to rise by half a billion more (€2.5mi) from the predicted 2 billion euros.

“Logistics remain a worry”

An unexpected tide, as the European market keeps performing below pre-corona levels, despite a normalised societal context and an averted chip crisis. But logistical problems remain a worry, acknowledged the brand’s Chief Financial Officer Thierry Piéton who thinks it will get resolved during the second half of this year. Also, Renault had to ditch its Russian businesses with Lada, which accounted for roughly ten per cent of the group’s revenue.

The positive outlook is attributed to the commercial success of the Renault Arkana and Austral as well as the budget-oriented Dacia Jogger, together with cost-cutting interventions bearing fruit. Customers are also shopping for the better-equipped versions at Renault, returning a higher profit. In the case of the Austral, more than half of the customers opt for the pricier Alpine trim levels.

Alpine re-imagined

The move towards more premium sales is also fueled by the plan to develop Alpine into a full-fledged brand, offering high-end SUVs and zero-emission sports cars, and the launch of the Rafale. The latter is the brand’s flagship aiming at the likes of the Audi Q5. To boost confidence, Renault will launch 12 of the aforementioned 18 models already in 2024.