Renault is all in on electrification, and its eagerly anticipated Renault 5 electric model is a testament to this commitment. However, a potential curveball might lie ahead: the price tag.
Recent rumblings suggest the cost could hover around £30,000, a surprising shift from initial expectations. While the cause hasn’t been officially confirmed, factors such as rising raw material costs and domestic production in France could be influencing this change.
Renault has been making significant strides in its electrification efforts. The brand is gearing up to unveil its new Scénic E-Tech at the upcoming Munich IAA, an event that the team at Survoltés is eagerly tracking. While Volkswagen’s approach leans more toward futuristic innovation, Renault is leaning on nostalgia and is set to launch the R5.
The Renault 5 electric model is slated for a debut next year, after making its initial appearance as a concept back in January 2021 during the Renaulution event.
Although the full scope of its technical specifications remains undisclosed, the company continues to tease details about its Alpine variant, inspired by the A290_β concept.
A few days ago, Fabrice Cambolive, Renault’s CEO, sat down with German magazine Autogazette to discuss the brand’s future, with the spotlight shining on the upcoming electric compact.
The topic at hand? The price tag, which is yet to receive an official stamp. However, indications are that it might soar higher than anticipated. While the initial benchmark was around £20,000, projections later shifted to about £25,000.
Navigating Price Variability and Factors at Play
As time rolled on, the estimate evolved to hover around £25,000. However, Renault isn’t making a final call just yet. Cambolive stated that the price will be around £25,000 but hinted that they are diligently striving to offer the R5 for under £30,000.
This could place the electric city car in proximity to the Renault Zoé, currently starting at around £30,100 after a £5,000 eco-bonus.
Comparatively, the current Renault Twingo E-Tech begins at approximately £20,250 after state assistance deductions. Could the future R5 align itself within this pricing spectrum? It’s likely.
However, some disappointment lingers as Fabrice Cambolive affirms that the 100% electric Ampere division will eventually lead to price reductions.
The Challenges Ahead
While this prospect seems promising, the reality is more complex. Several factors might contribute to the probable price hike.
For one, the production location in France, particularly at the Douai factory, brings forth considerations of European labor costs. Simultaneously, factors like raw material cost escalation and energy expenses must also be factored in.
Electricity prices are on the rise, inevitably impacting production costs and, consequently, the end customer price.
Nevertheless, Renault remains committed to ensuring affordability, aligning with the pledge by Emmanuel Macron for an electric car costing just £100 per month.
Achieving this relies on simplified design and a battery with enhanced energy density.
According to the interview, the Renault 4 model is also slated to offer competitive pricing, although specifics have not been unveiled yet.
Both creations are set to compete with the upcoming Volkswagen ID.2 and the forthcoming Citroën ë-C3, both boasting budget-friendly price tags.
These endeavors might well unsettle the Dacia Spring, which currently faces minimal competition, at least until the arrival of the BYD Seagull in Europe.