Affordable EV

Renault SA is set to develop much of its sub-€20,000 ($21,700) Twingo in China, marking a strategic move to accelerate the availability of affordable electric vehicles.

The French automaker will collaborate with a Chinese company to create the battery-powered city car, scheduled for sale in 2026.

The partnership involves a Chinese firm to streamline development, while “styling and advanced engineering” will be handled in France, as per a Renault spokesperson.

Partnership Details

During a recent shareholder meeting, de Meo indicated that the vehicle would likely be assembled in Europe, potentially in Slovenia. The Twingo project will be managed by Ampere, Renault’s dedicated EV unit.

Project Leadership

This collaboration is distinct from Volkswagen AG’s decision to develop a low-cost EV independently, bypassing potential partnerships with Renault’s software and EV unit, Ampere.

Learning  from Chinese Expertise

European automakers, including Renault, face significant pressure to update their vehicle lineups amid slow economic growth and reduced subsidies affecting EV demand.

Market Pressures

Western European manufacturers, like Renault, are turning to lower-cost countries for engineering to cut expenses, while China remains a hub for EV technology breakthroughs despite not always being cheaper.

Cost-Efficiency Strategies