Renault readies for ‘golden moment’ for EVs in UK despite Chinese onslaught

{"text":[[{"start":10.14,"text":"Renault’s chief executive has predicted “a golden moment” for its electric vehicle push in the UK despite the onslaught of Chinese rivals that have taken about a fifth of Europe’s second-largest car market."}],[{"start":22.5,"text":"The comparatively small French carmaker has shown more resilience recently as rivals slash sales forecasts and announce major restructuring programmes."}],[{"start":32.02,"text":"While Renault has benefited from not being exposed to China’s downturn and geopolitical upheaval in the US like its peers, the company’s focus on Europe has also left it vulnerable to the rapid expansion of BYD and other Chinese carmakers under heavy pressure to boost exports to counter slowing sales in their home market."}],[{"start":null,"text":"

"}],[{"start":50.96,"text":"Following the successful electric revival of small cars such as the R5 and Twingo, in particular in France, chief executive François Provost said the group will seek to expand its market share in the UK with midsized models that will be developed on its new EV platform. New electric versions of Scenic and Rafale are expected to be launched as early as in 2028."}],[{"start":72,"text":"“This is where I expect we can reach the second breakthrough,” Provost said in an interview in London. “My feeling is that we are at the historical golden moment for Renault UK.”"}],[{"start":82.2,"text":"The French group has emerged from several years of setbacks and restructurings under former chief executive Luca de Meo and now Provost, while it has simultaneously gone all in on electric cars, building many of these in France."}],[{"start":96.12,"text":"Its EV sales in Europe surged 85 per cent year-on-year in the third quarter on the back of rising fuel prices. While electric cars are less profitable than Renault’s shrinking internal combustion engine offerings, the company has kept its annual guidance for an operating margin of about 5.5 per cent."}],[{"start":112.52,"text":"“We invested like hell on EVs,” Provost said. “Renault will continue to lead the trend on EVs.”"}],[{"start":119.44,"text":"So far this year, Renault Group, which includes Dacia and Alpine, has also maintained its 4 per cent share in the UK — with its R5 becoming the best-selling EV in July before supply issues knocked it down the charts more recently — even as Chinese-owned brands took a combined 22 per cent share in the absence of import tariffs."}],[{"start":null,"text":""}],[{"start":138.6,"text":"Provost said Renault’s advantage would come from “customer experience, quality, durability [and] partnership with our dealers”, arguing that drivers would also have a stronger emotional connection with their cars compared with newer offerings from China. “[On the] technology side, we are at the same level. We have no fear.”"}],[{"start":158.64,"text":"Provost also said Renault would be “at the same level or even better” in terms of autonomous technology but he declined to comment on who the group is going to partner with to develop advanced driver assistance and autonomous driving systems — an area where Tesla and China’s Xpeng are leading within the automotive industry."}],[{"start":178.56,"text":"European carmakers benefit from EU tariffs on Chinese EV imports of up to 45 per cent, and Brussels has also pushed for the UK government to bring in similar measures. There is also pressure on Downing Street to align UK trade rules with the EU in order to be included in the “Made in Europe” public procurement scheme."}],[{"start":198.8,"text":"The European car industry has also called for a delay to a post-Brexit rule change that is due to hit most electric vehicles sold between the UK and the continent with 10 per cent tariffs starting next year."}],[{"start":null,"text":""}],[{"start":211.56,"text":"Provost has described the rules of origin — which will require that non-EU or UK materials make up no more than 35 per cent of the value of battery cells and 30 per cent of battery packs — as “completely unrealistic” considering the industry’s continuing reliance on China for batteries and raw materials."}],[{"start":228.84,"text":"“More than 50 per cent of my battery is European,” Provost said. “I cannot deliver [to] all my customers, not because I don’t want to but because I do not have enough [European battery] supplies.”"}],[{"start":241.2,"text":"In the face of the geopolitical tensions and increased competition with newer rivals, Renault has halved the development cycle for its vehicles and cut costs using Chinese components."}],[{"start":251.76,"text":"While some analysts have questioned whether Renault will be able to maintain its independence with its small scale, Provost said the group did not envision being part of a broader alliance with rivals such as Ford and Geely, with which it has separate partnerships."}],[{"start":265.36,"text":"“I think the recipe is always to be obsessed with transforming the company in order to be better than our competitors,” he added."}],[{"start":278.08,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1794046593_4303.mp3"}