French automaker Renault Group announced plans Thursday to invest €400 million ($430.92 million) by 2027 to establish an electric vehicle export hub in Turkey, Reuters reports.
The announcement came from Chief Executive Fabrice Cambolive himself during his visit to Istanbul.
“We will make our Bursa factory the export center not only for Europe but also for other countries worldwide.”
Renault CEO Fabrice Cambolive told a meeting with the press in Istanbul
Plan details
Renault and its partner OYAK Group plan to utilize the investment to produce new models at their factory in the Turkish northwestern Bursa province, including a new mass-market Duster.
The French automaker aims to turn Turkey into an export hub for the European market and beyond, which is a crucial part of its “International Game Plan 2027.”
That said, Renault will export the new cars produced from the Bursa factory to a total of 80 countries. The mix includes Asian former Soviet republics, the Middle East, and North Africa, as reported by Automotive News Europe.
The Bursa factory will also apparently produce build hybrid powertrain parts to supply the region.
In order to fulfill all these plans, Renault will expand its engineering staff in the factory by twofold to 500 people by 2025.
“Türkiye plays a significant role in our ‘International Game Plan 2027.’ Our goal is to become the market leader in Türkiye, strengthen our brand with new products, show a strong presence, especially in the SUV segment and implement an electrification strategy based on hybrid and electric vehicles.”
Renault CEO Fabrice Cambolive told a meeting with the press in Istanbul
Renault has yet to reveal their specific sales target. Nonetheless, it asserted that expanding production at the Bursa factory will aid them in filling unused capacity.
As of now, the Bursa factory’s maximum annual production output is 390,000 units. Meanwhile, up to 40,000 extra units can be outsourced to a local partner.
Models in the pipeline
As mentioned, Renault plans to initially produce the third-gen Duster at the Bursa factory. It is a Dacia small SUV with a hybrid configuration, which will go on sale as a Renault outside the European market. It will be available in the second half of 2024, according to Daily Sabah.
Two new SUVs will join the Duster in 2026. According to the report, these two yet-to-be-named models will ride on Renault’s new modular platform.
Unfortunately, Renault has not yet disclosed information about the planned fourth model. Nonetheless, it confirmed that the initial three models would be small/compact SUVs to enter the B and C SUV market segments.
“Today, I am pleased to announce that we plan to localize four new Renault models before 2027 at our OYAK Renault Factory in Bursa. Among these new vehicles, three will be SUVs, including the Renault Duster. By offering a product range that meets customer needs in the B and C SUV segments in Türkiye, Renault will further strengthen its leadership position.”
Renault CEO Fabrice Cambolive told a meeting with the press in Istanbul
Set goals
Renault seeks to cut electric vehicle production costs by half within the following four years by increasing digital and artificial intelligence (AI) technology uptake to 3,000 by 2025. Notably, it already employs 300 AI applications for tracing components like tires and accelerating quality control.
Meanwhile, a 30% production cost reduction is expected for internal combustion engine vehicles.
The automaker also seeks to cut the vehicle development period from the industry standard of three years to just two years, Bazaar Times noted.
All these efforts will undoubtedly aid Renault in advancing in the European electric vehicle industry despite the growing competition posed by Chinese automakers and their cheap offerings. Renault believes that Turkey is a major industrial asset for the company, with the Bursa factory being the leading passenger car production site in terms of capacity nationwide. Excitingly, the automaker aims to launch the new modular platform in the Bursa factory by 2026 to further boost efficiency and flexibility for different powertrains.
