The head of the Renault group does not believe that the prices of electric cars will drop to the level of internal combustion vehicles in the foreseeable future. “I don’t see this parity coming,” Luca De Meo said on the sidelines of the Paris Auto Show.
The Italian manager explained that the cost of batteries has not yet decreased to the extent predicted by the industry. However, Renault, like the other major car manufacturers, focuses on the synergy between personal electric mobility and electric transportation solutions. Renault is among the established and largest brands in this aspect, as the French are among the pioneers of electric cars as we know (among other things with the help of the Better Place project). On the other hand, Renault is aware that, at least at the moment, they are at a disadvantage in terms of technology and sales.
In order not to lag behind the industry, Renault is in the midst of a massive attack of electric vehicles in order to return to being one of the leading electric vehicle manufacturers. In Europe, the Renault company, and especially the privacy division, aims to sell only fully electric vehicles in 2030. “I am taking the company there, but in the end the market, the customers, will decide if they want to go only in the direction of electric vehicles unilaterally,” said de meow.
Regarding the prices of small electric cars, he noted that they will continue to be significantly higher than those of equivalent combustion vehicles. “I can develop more efficient chemical formulas for better battery use and electrical systems, but those gains will be completely wiped out if the price of cobalt doubles in just six months,” said De Maio.
Many of the important raw materials for batteries, like other materials, have become significantly more expensive in recent months. The raw materials currently make up about 80% of the battery’s cost. In his opinion, adjusting the battery size to meet customer needs could be the way forward. From an ecological point of view, it “simply doesn’t make sense to have vehicles with batteries between 150 and 200 kilowatts” De Meo explained. “A better charging infrastructure could allow automakers to reduce the battery size of future electric vehicles. This would have a significant impact on price, as the battery pack is the largest cost item in electric cars.”
In order to establish Renault’s electrified product line for the coming years, whose models are now being launched in the form of the Renault 5 and 4 series, de Meo wants, among other things, to create a differentiation between the types of drive, that is, to split the group into an electric unit and a combustion unit. Among other things, the split will result in the electric unit called “Ampere” and the engine division with the unknown original name: “Horse”. According to the CEO, this reform is necessary in order to be able to absorb new ideas in the field of electric vehicles.