Renault introduces six-year plan – 21 new models including eight electric vehicles, 12 hybrids by 2022

Groupe Renault has just revealed its new six-year business plan called Drive the Future, aimed at delivering annual revenues of over €70 billion (RM347.6 billion) and a group profit margin of 7% by 2022, plus positive free cash flow every year.

Central to its plan is a massive product offensive, with no less than 21 new models in the pipeline, including a compact MPV for India, a new C-segment crossover and an entry-level electric vehicle for China. Renault is banking heavily on electrification, as it prepares to launch eight full electric vehicles and 12 hybrid models, driven by an expected 30% reduction in battery costs and a 20% reduction in motor costs.

Electric vehicles will become more attractive to consumers, according to the company – they will feature interior space belonging to a class above, as well as a flat floor and over-the-air firmware updates. Renault also plans to put an end to range anxiety, with vehicles having over 600 km NEDC-rated range, translating to a real-world range of around 400 km. Quick charging will provide up to 230 km of range in 15 minutes.

Also on the cards is an expansion of the group’s low-cost global access range, which includes the Dacia and Lada brands as well as Renault’s entry-level Kwid crossover. The company’s light commercial vehicle (LCV) lineup is also set to grow as Renault chases its objective of becoming a top global player in the segment, as well as offering the largest range of electric commercial vehicles.

Autonomous driving is another key area, with plans to incorporate Level 2 semi-autonomous highway driving from 2019, starting with the next-generation Clio and Espace. The company will then shift to Level 3 multi-lane self-driving in 2021 and full Level 4 in 2022, beginning with an all-new electric vehicle. All-in-all, Renault intends to eventually offer 15 autonomous models in its lineup.

Under the new plan, Groupe Renault forecasts a 40% growth in unit volumes to over five million vehicles a year, compared to the 3.47 million units it sold in 2016. It also plans to synergise parts sharing across the Renault-Nissan-Mitsubishi Alliance, with 80% of Renault models to be built on the Alliance’s modular platforms, slashing up to 40% in research and development costs and 30% in production costs.

Other details in the plan include €4.2 billion (RM20.9 billion) in savings through the use of the Monozukuri production process, plus an €18 billion (RM89.4 billion) investment in research and development over the course of six years. Renault also plans to have 100% of its vehicles to be connected to Internet services in key markets by 2022, up from 30% currently.

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