Renault willing to share technology for driving down costs

Chintan Mehta

21 May 2025, 04:07 PM

1.8K

Renault has decided to share its vehicle platforms and architectures with other car companies to help keep rising EV production costs under control. As CEO Luca de Meo explained, the main goal is to reduce production and supply costs, especially for small cars and commercial vehicles, where traces are slender, he said.

Quick Comparison: Renault’s Open-Tech Approach vs Traditional OEM Models (2025)

Feature	Renault’s Open-Tech Strategy	Traditional Approach
Platform Sharing	Open to sharing with other carmakers	Mostly kept proprietary
EV Development	Collaborative, cost-saving approach	Independent, more expensive
Target Price for EVs	Sub-€20,000 for Twingo EV	€25,000+ for most small EVs
Small Car Profitability	Transparent about low or no profits	Often hidden or subsidized
India Strategy	Aims for full control of Indian joint venture	Many stick with joint ventures
Goal	Make affordable EVs more accessible globally	Compete individually

At a parliamentary hearing in Rome, de Meo insisted that Renault continues to invite technological partnerships, even though last year’s plans with Volkswagen were abandoned. At one stage, both carmakers planned to build a low-cost electric Renault Twingo together, but the German brand later withdrew.

Work on the next-generation Twingo EV is now being handled independently by Renault which aims to release it in 2026 for less than €20,000 (roughly $21,700). The Renault Twingo EV is a very affordable electric vehicle on the European market, helping promote Renault’s plan to make electric cars accessible to all.

“The idea is simple—when you share platforms and core architectures, you reduce duplication and investment,” said de Meo. “This is critical in segments where the cost of regulatory compliance is rising faster than revenues.”

Regulatory changes from 2015 to 2030 are predicted to add 40% to the cost of small cars and about 20% to the cost of medium-sized vehicles, he said.

When we talk about India’s coastal regions, we mean those areas that are expanding.

At the same time, Renault is taking over full control of its joint venture with Nissan in India. French automaker Renault has informed the Competition Commission of India (CCI) about its intention to buy the 51% stake in RNAIPL from Nissan.

This acquisition will include all shares and zero-coupon non-convertible preference shares owned by Nissan Motor Co. Ltd. and Nissan Overseas Investments B.V. With this approval, Renault will own the venture all on its own which would help it make better business decisions as competition continues to grow in China.

Automakers worldwide are focusing their growth ambitions in electric cars on India. Since Asia-Pacific is becoming a big EV and small-car market, having full control in the region could let Renault speed up introducing electric vehicles that people can afford.

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How the Industry is Affected

Renault’s choice to use the new platform shows that the automotive industry may now prefer to join forces than to compete alone. When costs to develop EVs are so high and more rules are making them more expensive, teamwork in innovation could be key.

Renault’s previous difficulties and new independence point toward the company being ready to dominate cost-effective EV manufacturing in parts of Asia and Europe.

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