French legacy automaker Renault has conceded that achieving Europe’s electric vehicle targets amid waning demand will be challenging, Reuters reported, Chief Executive Officer Luca De Meo’s remarks in an interview with business daily Les Echos on Monday.
Renault CEO says 2035 target unrealistic
Renault CEO Luca De Meo raised concerns about Europe’s set timeline for the electric vehicle transition.
The Renault boss asserted that the company must resort to price cuts if it aims to achieve its electric vehicle goals.
While EV adoption is crucial in cutting global carbon emissions, it remains challenging for automakers to deliver on their targets due to weak customer demand in key markets like Europe. In fact, recent EU elections witnessed intensifying calls from automakers to ditch the plans to ban new diesel and petrol car sales by 2035.
Despite CEO Luca De Meo’s apprehensions, he still warned against ditching the electrification push entirely due to the ongoing market slowdown. He outlined the strategic significance of remaining committed to sustainable objectives.
“We need a little more flexibility in the schedule. However, it would be a serious strategic error to purely and simply abandon the objective because of the current market slowdown.”
Renault CEO Luca De Meo
Renault’s EV transition status
Renault boss Luca De Meo also admitted in response to a query that the French automaker remains far from converting 100% of its European automotive production to electric due to a weak domestic market.
“The truth is we are not yet on the right trajectory to achieve 100% electric cars by 2035. That’s the truth. If customers don’t follow us, we’re all responsible. We need to cut costs.”
Renault CEO Luca De Meo
Renault plans to “do more with less” by cutting CO2 emissions throughout the lifecycle of its models. It aims to achieve net zero by 2040 in Europe and 2050 worldwide.
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Challenges
The automotive industry has faced considerable hurdles, continuously affecting the shift to electric vehicles. Some of these challenges include regulatory uncertainty and intensifying competition from China-made offerings, “adding to a cost-of-living crisis in home markets.” On top of these, the market is also suffering from fluctuating consumer demand, as mentioned earlier.
In fact, EV sales increased by 35% in the global market last year but declined in 2024. In the EU, new car sales surged 4.3% in June to its highest record since July 2019. In contrast, battery-electric vehicle sales dropped marginally.
The Renault boss’ recent comments mirror a wider industry sentiment struggling with the challenges of speeding up the shift to electric vehicles amidst economic realities.
