06:55 15-11-2025

How Renault aims to cut electric car costs 40% by 2028

Renault targets 40% lower EV production costs by 2028 via LFP batteries, simpler electronics, and EU supply to make mass-market electric cars more affordable.

Renault is looking to bring down the cost of mass‑market electric cars by attacking manufacturing expenses head-on. As Clea Martinet, vice president for sustainability at Renault and Ampere, explained, the price gap with combustion models largely comes from costly batteries and electronics.

The company has already clustered plants and suppliers in France into a single logistics zone, which helped make the Renault 5 more attainable. Building on that, Renault now aims to cut production costs by 40% by 2028 compared with the first Megane E-Tech—a target that, if achieved, could tilt the scales in the compact segment.

The plan leans on several levers: adopting LFP batteries for multiple models, refining electric drive units, and simplifying electronic architectures. Martinet pointed out that China dominates the supply of raw materials and components for LFP cells, a reality that makes localizing the chain more challenging. It’s a calculated trade-off: LFP promises savings, but supply concentration adds complexity.

Renault is also banking on European battery manufacturing with AESC and preparing to scale recycling of end-of-life packs by 2030. Hydrogen and e-fuels are not being pursued as mass solutions for passenger cars, with the focus there shifting to commercial applications—an approach that favors technologies ready to scale now rather than later.

Cost remains the deciding factor for many buyers weighing their next car, and Renault expects this refreshed strategy to make electric vehicles more accessible. If the execution matches the ambition, it’s the kind of pragmatism likely to resonate with budget-conscious shoppers.