French automaker Renault has just announced plans to partner with a Chinese engineering company for the development of its new sub-€20,000 ($21,700) Twingo electric vehicles in China, Reuters reported.
Renault leverages Chinese tech expertise to speed up development
Renault will team up with a yet-to-be-named Chinese engineering company to help in the development of its future Twingo electric cars.
The French automaker targets the sub-€20,000 ($21,676) price point for the new Twingo EVs amid the growing number of Chinese-made models in the European market.
According to Renault’s Ampere spokesperson, the low-cost EV development is rapidly progressing.
“Twingo’s development is moving forward quickly, as we plan to make the development in two years. The development of the car will be done with a Chinese engineering partner to improve our development lead time and costs.
The project is conducted by Ampere. The styling and advanced engineering project are made in France, and production will be in Europe, as planned.”
Renault’s Ampere spokesperson
Renault faces competition amid affordable EV race
The continuous expansion of Chinese electric automakers and their growing dominance in the global market prompt European brands to deliver smaller models with sub-€20,000 ($21,700) price tags.
A sub-€20,000 Twingo EV would be a strong contender in the market. It could draw in budget-conscious buyers in Europe, especially considering the surge of low-cost EVs from China.
Renault’s move is a crucial part of its efforts to stay relevant in the face of fierce competition. It offers the potential for a larger market share and brand image. However, careful execution is needed to balance affordability with profitability and brand perception.
Cancelled partnership with Volkswagen
Earlier this month, Renault and Volkswagen officially ended negotiations to jointly develop an affordable electric version of the Twingo. They initiated the discussion as they sought to challenge low-cost Chinese models’ dominance in Europe.
Renault explained that its move to partner with a Chinese company for the sub-€20,000 Twingo EV was entirely separate from the earlier negotiations with Volkswagen.
