Renault is setting up an EV research and development team in Shanghai. It aims to begin mass production of a new EV by late 2025. The new car will be manufactured and sold only in Europe, local media report.
Despite Renaultβs strong connection with the Chinese auto industry, this is the first time the French automaker will invest in the development of a new car in China, AutoPix reports.
However, Renaultβs China-developed EV will not be built in China and is not planned to be launched in the domestic market. βThis car is only for Europe,β the report claims.
In June, it was reported that the Chinese would help Renault with an electric version of Twingo. βThe development of the car will be done together with the Chinese partner to reduce the development lead time and costs,β a project insider told Autohome.
Later that month, Renaultβs head of industrial strategy, Franck Naro, claimed that the company was on par with the Chinese on the EV assembly line and could match the production speed of the most competitive Chinese EV makers. βFrom what we can see, we are parallel to them,β Naro said.
Renaultβs small R&D team in Shanghai was established earlier this year to work on an updated EV program. This team is part of Renault Chinaβs Shanghai office but reports directly to Renaultβs headquarters in France rather than Renault China, Autopix says.
Renault plans to shift more of its EV R&D to China, a source familiar with the matter said. The goal is to build a full EV development system there, including both software and hardware.
Renault most likely wants to take advantage of Chinaβs extensive EV supply chain, following its legacy peers in relocating parts of their R&D and supply chain operations to China. For example, Volkswagen is designing EV models in China specifically for the Chinese market, while BMW and Mercedes-Benz are developing EVs in China for global sales.
Renault, however, is a bit different. Since it doesnβt have a large market presence in China, it isnβt focused on competing in Chinaβs EV market. Instead, Renault is aiming to use China as a base for EV development and supply chain needs, with Europe and other overseas markets as its primary focus, the report says, citing a source close to Renault China.
In October last year, Renault announced its vehicles would adopt Geelyβs CMA platform, revealing the Niagara concept car.
In May this year, Renault and Geely announced they partner in a venture focused on PHEV and combustion engines.
