Recently, Renault of France and China's Xiaomi and Ideal have negotiated on smart electric vehicle technology, which has brought imagination to Renault's return to the Chinese market.
On April 28, according to "European Automotive News", Renault has been in talks with China's Li Auto and Xiaomi on smart electric vehicle technology, opening the door to potential cooperation with the two companies in technology.
In a tweet posted on the LinkedIn page, Francois Provost, Renault's head of procurement and partnerships, said: "CEO Luca de Meo had key conversations with industry leaders, including partners Geely and Dongfeng, major suppliers, and new players such as Li and Xiaomi. ”
During the Beijing Auto Show, it is difficult not to think of Renault Passenger Cars' intention to "return" to the Chinese market by taking advantage of the ideal of Xiaomi and the head of the new automobile force in China.
Maintaining a connection with China, Renault's electrification is sober
Recently, Renault CEO Luca de Mayo made it clear that "Europe is currently facing a difficult balance between protecting its own domestic market and learning from Chinese automakers." He stressed that China is indeed ahead of other markets in terms of software development for electric vehicles and intelligent connected vehicles.
Luca de Mayo's remarks come after a series of investigations by the European Commission into Chinese exports. In terms of car exports, the EU launched an inquiry into whether the growth in Chinese electric vehicle sales on the European continent benefited from unfair subsidies. The Chinese side objected to this and accused Europe of trade protectionism.
In late March, Luca de Mayo published a letter to the European Union, expressing his concern that the EU might launch a countervailing investigation into Chinese electric vehicles. "Closing the door to China completely would be the worst way to respond," he said in the letter. ”
From the statement of the CEO of Renault, it can be seen that Renault attaches great importance to the Chinese market, which also sets the tone for Renault's cooperation with Ideal, Xiaomi and even more Chinese electric vehicles.
Prior to the cooperation between Renault and Xiaomi, Renault had already signed a memorandum of understanding with Geely Holding Group to establish an innovative partnership to accelerate the implementation of Renault's "Renaulution Program" in China and South Korea.
In July 2023, the two companies further deepened their cooperation by announcing the establishment of a powertrain technology company to develop, manufacture and supply advanced hybrid powertrains and efficient fuel-powered powertrains worldwide. Previously, Renault Group's Chief Procurement, International Cooperation and Public Affairs Fulan revealed that the first production car developed by the two parties based on the Geely-Volvo compact modular architecture platform will be launched in September this year.
Coupled with Renault's negotiations with Li Auto and Xiaomi, it has undoubtedly added new chips to its layout in the global electric vehicle market. At the same time, these technical cooperation may also lay the foundation for Renault's future electric vehicle business to enter the Chinese market.
Is it time to return to the Chinese market?
In April 2019, due to the declining sales and operating conditions of Dongfeng Renault in the Chinese automobile market, the shareholders and shareholders planned to restructure Dongfeng Renault, and Renault of France planned to transfer its 50% stake in Dongfeng Renault to Dongfeng Group, and at the same time, Dongfeng Renault stopped business activities related to the Renault brand. Renault's fuel vehicle business has since withdrawn from the Chinese market.
After that, in response to the topic of "Renault's withdrawal from the Chinese market", Renault has explained many times, emphasizing that Renault will only give up the traditional fuel vehicle business in China in the future, and the development focus will be light commercial vehicles and electric vehicles.
The implication is that not making passenger cars does not mean that you will completely withdraw from China.
In addition to cooperating with Chinese automakers, Renault is also establishing partnerships with supply chain companies. Recently, Luca de Mayo said in an interview with foreign media that Chinese manufacturers are very strong, and the entire Chinese ecosystem is helping the development of the automotive industry, which gives a large number of enterprises the opportunity to participate.
In terms of batteries, Renault has reached a comprehensive strategic cooperation with Envision Power in June 2021, Envision Power will spend 2 billion euros to build a super battery factory in Douai, France, and achieve an annual production capacity of 24GWh by 2030 to support Renault's electric vehicle business in ElectriCity, and Renault will provide a five-year 40-120 GWh power battery order to Envision Power.
Among them, in February this year, Renault's new electric vehicle, the Renault 5 E-Tech, which made its world premiere at the Geneva Motor Show, will produce batteries by Envision Power. In addition, Renault also has important cooperation with CATL and Sunwoda.
Regarding Renault's future development in China, Renault China Chairman and CEO Su Weiming said in response to the CNS at the Geneva Motor Show in February: "At the level of Renault's board of directors, including Luca, Foran and me, there is a common judgment that China's electric vehicle market is currently undergoing a great adjustment, and it is not the right time to make vehicles in China at this stage, but this does not mean that Renault will not make vehicles in China in the future." ”
To accelerate the electrification transition, Renault has set up a separate entity called Ampere to implement its electrification strategy. According to Foran, the establishment of Ampere is the first key point of Renault's electrification strategy, and the team has a competitiveness comparable to Tesla or the top Chinese new energy car companies.
From this point of view, it is only a matter of time before Renault returns to the Chinese vehicle market in the name of electric vehicles. At present, China's new energy vehicle market is extremely involuted, and it is indeed not a good time to return. However, it is not yet known when the best time will be, but Renault's passion for electrification is visible to the naked eye, especially inspired by the involution of China's electric vehicle industry, the involution between automobile companies, and the rapid development of the supply chain.