Renault Ampere Unit Aims: Renault, the French automaker announced on Wednesday that its electric vehicles unit, Ampere, which is set to go public next year, anticipates revenues of 10 billion euros ($10.8 billion) in 2025, with an ambitious target of reaching 25 billion euros in 2031, effectively more than doubling its figures. The financial objectives for the unit include breaking even by 2025 and achieving an operating margin of at least 10% by 2030. This announcement precedes an investor day where Renault aims to garner support for the initial public offering scheduled for spring 2024.
However, the IPO plan has encountered challenges due to a slowdown in electric vehicle demand, market volatility, and heightened competition from Chinese counterparts. Sources close to the deal have suggested that the CEO’s valuation hopes of 8 to 10 billion euros might be overly optimistic.
Renault’s finance chief, Thierry Pieton, emphasized the company’s commitment not to undervalue Ampere, stating, “We are not going to give it away.” When questioned about alternative options, including distributing Ampere shares to existing Renault shareholders instead of proceeding with the IPO, Pieton mentioned that while Renault is open to other possibilities, the IPO remains the preferred choice.
Insiders familiar with the matter revealed last month that Renault would likely abandon the IPO if Ampere’s overall valuation falls below 7 billion euros. Pieton outlined Renault’s strategy to achieve price parity between electric vehicles and combustion engine cars sooner than its competitors, with smaller EV models reaching this parity within the next two years and larger ones by 2027-28. He emphasized Renault’s commitment to making electric vehicles more accessible in Europe by reducing costs, thereby lowering prices while concurrently improving profit margins.
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Our Reader’s Queries
How Renault’s Ampere aims to be Europe’s leader in EVs software defined cars?
Renault has announced that Ampere’s electric vehicles will be equipped with a range of cutting-edge technologies, including the launch of the group’s first-ever software-defined vehicle. This fully cloud-connected car will enable over-the-air updates, reduce chip costs, and increase residual value through software upgradeability. These advancements will undoubtedly enhance the driving experience and make Ampere’s EVs a top choice for tech-savvy consumers.
What is Renault Ampere?
Ampere is a European company that specializes in designing, engineering, manufacturing, and marketing electric passenger cars under the Renault brand. As of November 1st, 2023, Ampere has successfully completed a carve-out, becoming an independent company and the first European EV and software pure player. With a focus on electric vehicles and software, Ampere is paving the way for a sustainable future.
How much is the Renault Ampere?
Ampere is set to introduce the Renault 5 in the B segment by 2024, with a starting price of approximately 25,000 euros. The electric Scenic will also make its debut around the same time. In 2025, the Renault 4 and the Legend will be launched at a price point of less than 20,000 euros. The model range will expand further with two more second-generation vehicles by 2031.
What is the electrification strategy of Renault?
Renault is committed to achieving the most eco-friendly mix in the European market by 2025. Their goal is to have over 65% of electric and electrified vehicles in their sales mix. By 2030, they aim to have up to 90% of their sales mix comprised of battery electric vehicles. This is a significant step towards a more sustainable future, and Renault is leading the way in the automotive industry.