Renault’s electric vehicle Ampere unit has revealed a new small electric car (new Twingo) that will be offered at an entry price below €20k (before subsidies) which it also says will represent less than €100 per month for customers.
The new car – planned for launch mid-decade and to be made in Europe – is part of a strategy for Ampere to reach EV/ICE price parity before competition in the B and C segments.
Ampere claims it already has a major competitive advantage with its two EV platforms that are cost effective by design and fit-for-purpose:
- AmpR Small platform for the B-segment (previously CMF-B EV)
- AmpR Medium platform for the C-segment (previously CMF-EV)
Ampere maintains it has a clear roadmap to reduce its cost, based on a ‘holistic EV system approach’. By 2027/2028, Ampere targets to reduce variable costs between the first and second generation of C-segment electric vehicles by 40%, following a continuous trajectory, along three main levers, according to the company:
- EV engine (battery and e-powertrain): 50% reduction on battery cost per vehicle for the same range and 25% reduction on e-powertrain cost per vehicle;
- Vehicle (platform and upper body): 25% reduction in platform cost per vehicle and 15% reduction in upper body cost per vehicle;
- ‘Operational excellence’ allowing a reduction of 50% of manufacturing and logistic costs.
Ampere plans a line-up of seven vehicles by 2031: Megane E-Tech, Scenic E-Tech, Renault 5, Renault 4, the entry ‘Legend’ (new Twingo), and two additional unspecified vehicles.
Luca de Meo, Chief Executive Officer of Renault Group (and also CEO of Ampere) said: “Ampere is an ambitious, holistic, and structural response of the European industry to the challenges coming from East and West.
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“In the true spirit of Renault, Ampere is engineered to make electric and connected cars affordable for all, addressing the imperatives of energy transition and seizing the growth opportunities on the market.
“Ampere combines the best of two worlds: the experience and firepower of a leading carmaker and the agility and innovation of a newcomer. Ampere is ESG in 3D, designed from scratch reaching the highest standard in terms of decarbonization, circular economy and fair transition.”
He also referred to plans for an Ampere IPO, expected in 2024: “The recent carve-out, successfully completed two weeks ago, is a first significant milestone for us, and we are preparing the next strategic move: the IPO is an opportunity to further accelerate the development of Ampere without drawing on Renault Group resources and it allows Renault Group to accelerate on the roadmap to reward its shareholders.”
Renault maintains that Ampere allows a ‘unique horizontal approach based on partnerships with Google & Qualcomm Technologies to save time and cost, reduce execution risk and provide customers with the best solutions on the market.’ A first Software-Defined-Vehicle (SDV) is planned for launch in 2026.
It was also disclosed that Nissan and Mitsubishi Motors are ‘first cornerstone investors, investing in total up to €0.8bn in Ampere’. Qualcomm Technologies is also considering investing, Renault said. Nevertheless, Renault Group will ‘keep a strong majority in Ampere’s capital’.