Categories: News

Renault unhappy with recent ‘unhealthy’ price cuts for electric cars

Luca de Meo, the CEO of Renault, does not look favorably on the recent drop in prices affecting electric cars, and in particular at Tesla!

In recent weeks, the drastic price reductions operated by certain brands on their electric vehicles have caused a lot of ink to flow. He is now the CEO of Renault, Luca De Mea, who speaks on the subject. According to him, this sudden price drop is not “healthy for the (future) electric vehicle industry”, the media reported. Autocar.

Tesla as a bad example

We remember, at the start of the year, it was the electric giant Tesla that surprised everyone, including its own customers! The prices had in fact come down to €13,500 in a single night on some models… This is particularly the case on the Model 3, which saw this dizzying drop in price for the entry level. The other models have also seen their prices reduced, but to a lesser extent. While some rushed to buy this top-of-the-range sedan, some customers were very unhappy to hear the news, their order form already in hand…

Other manufacturers have followed suit

To follow suit and attract customers, other brands have also made significant price cuts. This is particularly the case of Ford in the USA who has lowered prices from Mustang Mach-E with up to 9 000 $ of discount. VinFastthe Vietnamese manufacturer, also wants to make major promotions on some of its models to counter the announcement effect.

But in Europe, these price cuts have not been seen very favorably. This is the case of Luca de Meo, the CEO of Renault, who fears that falling prices will eat away at the profits of all manufacturers of electric vehicles.

While this may sound like a greedy CEO whim, he says it could have long-lasting effects on the industry.

« I think a price battle for electric cars right now, as we start operations, is not the best thing that can happen to the industry. »

« Because we have to invest, we have to generate a margin for electric cars. Otherwise, it will not become a very healthy business for the industry. »

Read also :

Renault is reorganizing in depth with Nissan

Retromobile 2023: the Renault Twingo celebrates its 30th anniversary!

Renault Zoé: what results after ten years?

As a reminder, Tesla claimed that the brand was able to make these price reductions thanks to efficiency gains in the construction of the Model Y and Model 3. These are indeed built in Shanghai for the British market for example.

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