Renault targets sporty EVs to boost profits

Renault is focusing on sporty electric vehicles (EVs) to enhance its profitability. By prioritizing innovation and performance in their EV lineup, Renault aims to attract a broader customer base and drive financial growth. This strategic shift reflects the company's commitment to staying competitive in the rapidly evolving automotive market, leveraging the increasing demand for electric vehicles to achieve a significant profit boost.

Boston Brand Media brings you the latest news - French automaker Renault presented an electric sports car on Thursday, the first in a planned range of premium EVs, which could help it fight off looming competition from China and grab share in a category outperforming the rest of the market.

In Paris, Renault unveiled an electric sports car on Thursday, marking the debut of a planned premium EV range aimed at countering Chinese competition and capturing a high-performing market segment.

European car firms won a brief respite from mounting Chinese competition after the EU said on Wednesday it would impose tariffs of up to 38% on Chinese EV imports.

European automakers received temporary relief from increasing Chinese competition as the EU announced on Wednesday it would levy tariffs up to 38% on Chinese EV imports.

But the duties are only expected to slow a surge in sales planned by Chinese companies who are also building factories in the region.

However, these tariffs are expected to merely slow down the surge in sales planned by Chinese companies, which are also setting up factories in Europe.

Better known for its mid- to low-end Renault and Dacia cars, Renault plans to roll out seven electric models under its Alpine sports brand to capture higher margins. Renault, typically recognized for its mid- to low-end Renault and Dacia cars, intends to launch seven electric models under its Alpine sports brand to achieve higher profit margins.

The first, the compact Alpine electric A290, is based on the Renault 5, with some features of the Alpine sports car that races in Formula 1. The initial model, the compact Alpine electric A290, is derived from the Renault 5 and incorporates features from the Alpine Formula 1 sports car.

It will be priced from 38,000 euros ($41,000), well below Porsche or Ferrari, competing instead with Volkswagen’s Audi, BMW, Mercedes, and Tesla (TSLA.O). Priced starting at 38,000 euros ($41,000), it is significantly cheaper than Porsche or Ferrari, positioning it against Volkswagen’s Audi, BMW, Mercedes, and Tesla.

The new range will support the brand’s growth and international development, Renault said on Thursday. Renault stated on Thursday that the new range will bolster the brand’s growth and international expansion. Renault reported first-quarter revenue of 11.7 billion euros ($12.64 billion) and expects growing volumes this year with new launches. It is aiming for a double-digit operating margin by 2030 but is facing headwinds, particularly in electric models that are 7% of its business.

Renault announced first-quarter revenue of 11.7 billion euros ($12.64 billion) and anticipates volume growth this year with new launches. It aims for a double-digit operating margin by 2030 but faces challenges, especially as electric models currently constitute 7% of its business.

Demand for EVs overall has sharply slowed in Europe due to reduced government subsidies. Renault also faces fierce competition from low-cost Chinese players and will be hit by EU tariffs on its China-made Dacia Spring. Overall demand for EVs in Europe has declined significantly due to reduced government subsidies. Renault also confronts intense competition from low-cost Chinese manufacturers and will be impacted by EU tariffs on its China-made Dacia Spring.

Premium electric vehicles, such as Tesla’s Model Y and 3, the BMW X1, the Mercedes EQ4, and Audi’s e-tron range, are doing better, with wealthier customers less reliant on incentives.

Boston Brand Media also found that, premium EVs, including Tesla’s Model Y and 3, the BMW X1, the Mercedes EQ4, and Audi’s e-tron range, are performing better as wealthier customers are less dependent on incentives.

The share of EV models in the European Union’s premium autos market is stable at around 17%, says S&P Global Mobility, compared with a declining share in the broader market, falling to around 12% this year from around 14% in 2023.

According to S&P Global Mobility, the share of EV models in the EU’s premium auto market remains stable at around 17%, compared to a declining share in the broader market, which dropped to 12% this year from about 14% in 2023.

The premium segment now accounts for 29% of the region’s EV sales, compared to 25% last year, the data also show.

The data also indicate that the premium segment now makes up 29% of the region’s EV sales, up from 25% last year.

“Despite the fact that Alpine does not have the history and continuity of Porsche, the brand is entering a 100% electric vehicle market which is very fresh and just waiting to welcome new players,” said Jamel Taganza, associate consultant at automotive data and analysis company Inovev.

Jamel Taganza, associate consultant at automotive data and analysis company Inovev, stated, “Although Alpine lacks the history and continuity of Porsche, it is entering a 100% electric vehicle market that is new and eager to welcome new players.”

Renault is targeting sales of 2 billion euros for the division by 2026 and more than 8 billion euros by 2030, with half outside Europe. Renault aims for 2 billion euros in sales for the division by 2026 and over 8 billion euros by 2030, with half of these sales occurring outside Europe. Already well known in Japan, it sees potential in South Korea and China where it estimates sales of 1 billion euros by 2030. Renault, already well-known in Japan, sees potential in South Korea and China, where it estimates sales will reach 1 billion euros by 2030.

Renault is far behind market leaders. Last year, it sold 4,328 Alpine vehicles, compared to 330,600 fully electric BMWs, 222,600 electric Mercedes, and 178,000 electric Audis, according to German trade magazine Auto Zeitung.

Renault lags behind market leaders, having sold 4,328 Alpine vehicles last year, compared to 330,600 fully electric BMWs, 222,600 electric Mercedes, and 178,000 electric Audis, according to German trade magazine Auto Zeitung.

Others are also entering the segment. Cadillac has unveiled new models for Europe in recent months. Other automakers are entering the segment as well, with Cadillac unveiling new models for Europe in recent months. Alpine’s approach, starting from a sports coupe and expanding into more accessible models, could bear fruit in the long term, added Taganza, pointing to a similar strategy taken by Porsche with its 911 and Geely with Lotus.

Taganza added that Alpine’s strategy, which begins with a sports coupe and expands into more accessible models, could be successful in the long term, similar to strategies by Porsche with its 911 and Geely with Lotus. The car will be shown in Le Mans on the sidelines of the 24 Hours of Le Mans endurance race this weekend. The car will be showcased in Le Mans this weekend during the 24 Hours of Le Mans endurance race.

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Source: worldautoforum‍