More than 120 years after Louis Renault drove his first motor vehicle through the streets of Paris, the car manufacturer is transforming for a decarbonized future.
Long celebrated for making attractively designed and economically priced vehicles powered by internal combustion engines (ICEs), last year Renault Group launched a brand-new business to propel it into the electric era: Ampere.
Bringing together some 11,000 Renault employees, of whom 35% are engineers, Ampere designs and manufactures electric passenger cars under the Renault brand. Ampere’s goal is to accelerate Renault’s growth in electric vehicles (EVs) and position the group as the European leader of the age of the zero-emission car.
“Ampere blends the strengths of both worlds: the stability of a legacy company and the agility of a startup,” says Josep Maria Recasens, Chief Operations Officer at Ampere and head of strategy and business development at Renault Group.
“We want to unlock a new entrepreneurial mindset, unlearn old paradigms and embrace new possibilities.”
Ampere’s current flagship model is the Megane E-Tech, which has a 2.2% share of the European EV market. In the next two years, the arrival of the all-electric Scenic, Renault 5 and Renault 4 is set to boost Ampere’s sales to c. 300,000 cars a year, up from c. 45,000 in 2023. That is projected to generate revenue of €10 billion in 2025.
By 2031, with a total of seven EVs in Ampere’s portfolio, the company expects to be making revenue of at least €25 billion a year.
One of Ampere’s primary objectives is to democratize EVs by reducing their end price. By 2027 to 2028, Ampere aims to decrease EV costs by 40%, mainly by simplifying the platforms for each car type, innovating in batteries and powertrains, and automating much of the manufacturing process.
“The primary barrier to EV adoption is their cost,” Recasens says. “The key solution lies in reducing their costs and achieve pricing parity with ICE vehicles. That will make EVs a compelling choice for all consumers, not just for the premium segment.” In 2025, the Renault 5 E-tech will come with a starting price of around €25,000. Ampere’s Legend urban electric vehicle will be offered at an entry price below €20,000.
“By 2028, Ampere aims to have 1 million electric vehicles on European roads, representing 10% of the market.”
Josep Maria Recasens, Chief Operations Officer, Ampere, SVP Strategy and Business Development, Renault Group.
Ampere is confident that its combination of competitive pricing, striking designs, and high brand awareness will help it perform strongly against rising competition from Chinese EV manufacturers.
Recasens says that software services such as faster charging and smarter route planning provide another way for Ampere to increase the competitiveness of its vehicles. Half of Ampere’s engineering workforce is dedicated to software and system engineering roles. Ampere is also partnering with tech giants Qualcomm Technologies and Google to share investments, minimise costs, and accelerate the development of operating systems and software.
“We plan to make these innovations available to other customers,” Recasens says. “We are building the foundations to transform the European automotive industry.”
“Our competitors from China are formidable. To match their productivity, we must double our efforts in innovation and value creation.”
As published in TIME magazine
