Renault Outlines Goals For EV Unit, No Plans For Selling It At A Low Price

Renault, the French automotive manufacturer, revealed on Wednesday that its electric vehicles unit, Ampere, is projected to generate 10 billion euros ($10.8 billion) in revenues by 2025, a figure expected to more than double to 25 billion euros by 2031. Ampere is slated for a market listing in the coming year.

The financial objectives for the unit encompass breaking even by 2025 and achieving an operating margin of at least 10% starting from 2030. 

These targets were presented ahead of an investor day, strategically positioned to garner support for an anticipated initial public offering scheduled for the spring of 2024.

However, challenges have surfaced, including a sluggish demand for electric vehicles, market volatility, and heightened competition from Chinese counterparts. 

Reuters reported last month that the envisioned valuation of Ampere, ranging between 8 to 10 billion euros, appeared overly ambitious according to sources close to the matter.

Thierry Pieton, the Finance Chief at Renault, emphasized the company’s commitment to not underselling Ampere, expressing confidence in Renault’s robust cash flow to sustain financing even if the desired IPO valuation is not achieved. He asserted, “We are not going to give it away.”

Addressing the possibility of alternative strategies, such as distributing Ampere shares to existing Renault shareholders instead of pursuing the IPO, Pieton acknowledged Renault’s openness to other options but underscored that the IPO remains the preferred avenue.

Insiders familiar with the situation noted that Renault might reconsider the IPO if the overall valuation for Ampere falls below 7 billion euros. 


David Huner
David Huner
David Huner is a tech lover. After completing his graduation from the University Of Phoenix, he started gather his knowledge mostly on latest technologies that keeps his life smart and cool. Now he wants to spread his knowledge with people who loves technologies.

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