PARIS: Renault SA is preparing a model offering with a majority of fully electric cars, just as consumers face sharply higher prices at the pump.
Sixteen of the 22 vehicles the French manufacturer plans to introduce in Europe by 2030 will be EVs, Renault said.
The group also plans to roll out 14 new cars outside of Europe, where it's seeking more growth.
The move comes before conflicting backdrops. On the one hand, gasoline prices are surging as the Iran war disrupts oil supplies.
But beyond the conflict in the Middle East, automakers including Stellantis NV and Volvo Car AB have been walking back their EV ambitions because of tepid demand.
Renault CEO Francois Provost is under pressure to improve sales amid rising competition from Stellantis and Chinese rivals such as BYD.
The company's shares are down by around a fifth this year.
With its main market in Europe, Renault is banking on the region regaining momentum on EVs.
Sales of vehicles with a plug are accelerating after countries including Germany restarted subsidy schemes.
Registrations of EVs rose 14% in Europe in January, while plug-in hybrids recorded a jump of nearly a third.
A Renault veteran who was previously procurement head, Provost has been cutting costs across the board to help stabilise the manufacturer following the surprise departure of his predecessor Luca de Meo.
Provost has been trying to convince investors that Renault must seek the kind of efficiency and agility of its Chinese rivals.
It's partnering with China's Geely to speed up and lower the cost of model development in countries such as South Korea and Brazil.
Renault on Tuesday reaffirmed its targets for a medium-term group operating margin of between 5% and 7% of revenue, and automotive free cash flow averaging at least €1.5 billion (RM6.9bil) a year.
The company expects to reduce variable costs per vehicle by around €400 (RM1.837bil) annually.
The automaker plans to use hybrid technology beyond 2030, it said.
It expects to further rein in expenses by using 30% fewer parts on average per vehicle and will deploy 350 humanoid robots for heavy work and low value-added tasks.
The company, which aims to grow further in Latin America and India, said it will maintain a strong base in Europe using its own platforms to become more competitive.
"Becoming Europe's benchmark carmaker means setting the ambition to design and produce in Europe products that are best‑in‑class in terms of desirability, technology and competitiveness," Provost said in the statement.
