French automaker Renault has announced plans to phase out the sale of purely internal combustion engine vehicles in Europe by 2030, marking a significant acceleration in its shift to electric mobility. The strategy, part of a new multiyear plan, targets 100% electrified sales—including hybrids—in Europe by the end of the decade, while aiming for a 50% electrified share in other markets.
The company projects Renault brand vehicle sales will reach two million units annually by 2030, a nearly 23% increase from current levels. To support this growth, Renault will launch 22 new models in Europe, 16 of which will be fully electric, alongside 14 models for international markets. This expands its electric vehicle (EV) range, including at the budget Dacia brand, which will grow from one to four electric models.
A cornerstone of the plan is a technology partnership with Google to develop a new dedicated electric car platform. This collaboration will produce Renault’s first “carOS,” a software system based on Android, designed to enable remote updates for up to 90% of vehicle functions and support ultra-fast charging in approximately 10 minutes.
The strategic pivot contrasts sharply with rival Stellantis, which recently reported a €22 billion write-down on its EV operations, citing misjudged consumer adoption rates. Renault acknowledges the financial challenge: its operating margin fell from 7.6% in 2024 to 6.3% last year and is projected to dip to 5.5% in the near term, as EVs currently yield lower profits than fossil-fuel vehicles. The company aims to maintain its margin within a 5-7% band.
Renault CEO François Provost emphasized the goal to design and produce in Europe “best-in-class” vehicles in terms of desirability, technology, and competitiveness. The plan underscores the mounting pressure on legacy automakers to transition to EVs amid stringent EU emissions regulations and shifting consumer demand. By committing to an Europe-only EV future by 2030, Renault is betting on aggressive product expansion and deep tech partnerships to navigate the costly transition and remain competitive in a rapidly evolving industry.
— AFP
