Renault to develop EVs for Europe in China, setting R&D team in Shanghai, report says

Renault is setting up an EV research and development team in Shanghai. It aims to begin mass production of a new EV by late 2025. The new car will be manufactured and sold only in Europe, local media report.

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Despite Renault’s strong connection with Chinese automakers, this is the first time the French automaker will invest in the development of a new car in China, AutoPix reports.

The new car will not be built in China and is not planned to be launched in the domestic market. “This car is only for Europe,” the report claims.

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In June, it was reported that the Chinese would help Renault with an electric version of Twingo. “The development of the car will be done together with the Chinese partner to reduce the development lead time and costs,” a project insider told Autohome.

Later that month, Renault’s head of industrial strategy claimed that the company was on par with the Chinese on the EV assembly line and could match the production speed of the most competitive Chinese EV makers.

Renault established a small R&D team in Shanghai earlier this year to work on an updated EV program, according to AutoPix.

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This team is part of Renault China’s Shanghai office but reports directly to Renault’s headquarters in France, rather than Renault China, the report says.

Renault plans to shift more of its EV R&D to China, with the goal of building a full EV development system there, including both software and hardware, a source familiar with the matter said.

Taking advantage of China’s extensive EV supply chain, many global automakers are relocating parts of their R&D and supply chain operations to China. For example, Volkswagen is designing EV models in China specifically for the Chinese market, while BMW and Mercedes-Benz are developing EVs in China for global sales.

Renault, however, is different. Since it doesn’t have a large market presence in China, it isn’t focused on competing in China’s intense EV market. Instead, Renault is aiming to use China as a base for EV development and supply chain needs, with Europe and other overseas markets as its primary focus, the report says, citing a source close to Renault China.

In May, Geely and Renault announced they partner in a venture focused on PHEV and combustion engines.