Renault targets price parity with combustion engines via Ampere EV strategy
The French automaker is slashing manufacturing costs by 40% and deploying LFP batteries to democratize electric mobility in Europe.
Renault Group is aggressively restructuring its electric vehicle operations to move EVs from a premium niche into the mass market. Through its dedicated EV unit, Ampere, the company is pursuing a strategy of drastic cost reduction and affordable pricing to compete with low-cost manufacturers.
To achieve price parity with internal combustion engine vehicles, Ampere aims to reduce vehicle manufacturing costs by 40% by 2028, specifically between its first and second generation of compact EVs. A cornerstone of this effort is the Twingo E-Tech Electric, slated for 2026, which Renault targets for a price point below €20,000. To support these goals, the company is shifting its battery strategy; starting in early 2026, Renault will integrate Lithium Iron Phosphate (LFP) and "Cell-to-Pack" technology, a move expected to cut battery costs by approximately 20%.
The Industrial Shift
This pivot is part of a broader effort to decouple EV development from legacy combustion engine processes. Renault has established "ElectriCity" in northern France as a primary industrial hub and is partnering with battery giants LG Energy Solution and CATL to localize the LFP value chain within Europe. This restructuring is designed to allow the company to scale rapidly, with sales targets set at approximately 300,000 EVs in 2025 and 1 million vehicles by 2031.
Why It Matters
Renault's strategy is a direct response to the influx of cheaper Chinese EVs entering the European market. By targeting the sub-€20,000 segment, Renault is attempting to build a "European challenger" capable of maintaining market share while transitioning its entire fleet to net-zero by 2035. As CFO Thierry Pieton stated, the goal is to democratize EVs in Europe by reducing costs to lower prices while simultaneously improving margins.
What's Next
While Ampere was initially positioned as a separate entity for a potential IPO, the company is now optimizing its development structure. According to company reports, Ampere's activities have been reintegrated into Renault Group's engineering teams as of January 2026. Investors and industry analysts will now be watching to see if these integrated engineering efforts can deliver the promised 40% cost reduction in time to meet the 2028 parity target.