Renault Group, the French carmaker, has set its sights on transforming its newly-carved out electric vehicle business, Ampere, into a major player in the European market. The company aims to rival the world's top EV manufacturers while generating billions in revenue from the sale of low-cost electric cars.
To solidify its position and attract investors, Renault plans to take Ampere public with an initial public offering (IPO) in 2024. As part of this announcement, Renault revealed its latest addition to the lineup – a new low-cost city car called Legend. The company aims to achieve annual revenue growth of 30% between 2023 and 2031.
Investors have already responded positively to Renault's plans, with shares in the Paris-listed carmaker experiencing a 2% increase on Wednesday. Over the past year, the stock has seen a 7% rise.
Ampere is determined to make electric vehicles more affordable. The business aims to reduce the costs of EVs by 40% within the next four years, striving to achieve price parity between electric cars and vehicles with internal combustion engines (ICE) by 2027/28.
In pursuit of this goal, Ampere plans to introduce four new low-cost EV models to the market by 2025. These models are expected to generate €10 billion in annual revenues. Furthermore, Ampere's long-term strategy involves expanding its vehicle range to include seven "competitive" electric cars by 2031, with the ultimate aim of achieving annual revenues of €25 billion.
Through these bold initiatives, Renault is positioning Ampere as a key player in the electric vehicle industry, poised for significant growth and ready to seize the opportunities presented by the evolving automotive market.
Renault's Ambitious Plans for Ampere's New Legend Budget EV
Renault CEO Luca de Meo recently held a presentation for investors, where he revealed Ampere's new Legend budget EV. The aim of this venture is to "democratize" electric cars and tap into Europe's rapidly growing electric vehicle market. Ampere plans to offer the Legend at prices below €20,000 per year, making it significantly more affordable than Tesla's EVs.
In addition to discussing the budget-friendly pricing, CEO Luca de Meo emphasized the importance of supporting Ampere as a European alternative to Tesla and China's top EV manufacturers. He urged European investors to take pride in this venture, stating that Ampere is an ambitious and comprehensive response from the European industry to the challenges presented by Eastern and Western markets.
Renault's Chief Financial Officer, Thierry Piéton, outlined the rationale behind the decision to pursue an Initial Public Offering (IPO) for Ampere. He explained that an IPO would provide an opportunity to expedite Ampere's development without relying solely on Renault Group resources.
Piéton, however, made it clear that Renault will not proceed with the Ampere IPO "at any price." The carmaker is willing to exercise patience and wait until market conditions are favorable. Piéton expressed confidence in Ampere's value but underlined the importance of ensuring the right valuation for this franchise. The IPO is currently planned for the first half of 2024, with the condition that the market can sustain the desired valuation.
Renault's vision for Ampere's Legend budget EV is poised to disrupt the market by offering an affordable alternative to consumers while simultaneously reinforcing European competitiveness in the electric vehicle industry.
