Renault has paused on releasing its initial public offering for its EV subsidiary brand, Ampere EV.
The company’s CEO Luca de Meo previously claimed the pure-play electric car company to be a competitor of a leading company in this space, calling out Tesla as a worthy rival. De Meo said that Ampere EV was Europe’s answer to Tesla, which is the US brand making its mark on the continent — not to mention a growing presence of its main rival BYD in Europe.
To improve sustainable mobility across the continent, its countries rely on brands to deliver new-energy vehicles (NEVs) and encourage authorities to add charging stations and other solutions to support a network of EVs.
De Meo said previously that Ampere could be valued at €10.5bn (US$11.4bn) and shake up the industry as the fighting force of EV market share in Europe. On Monday the 29th January, he told the media: “Today, we took a pragmatic decision. We are all focused on executing our strategy and building our track record to create value for all our stakeholders.”
What is Ampere EV?
The new EV brand is more than just another car maker, but a revamp of Renault as an all-electric company in the future. The business will be defined by the electric drivetrain and the software required to mould an ever-evolving mobility sector.
The company became the region’s first European EV and software business and, leading up to the potential IPO, was expected to make waves, redefining what sustainable transport would mean for European citizens.
Renault Group claimed to compete with the leading automotive companies and fend off competition by reaching price parity between EVs and internal combustion engine (ICE) vehicles.This would be led by a 40% cost reduction in the next three to four years.
Could Ampere EV actually rival Tesla?
In terms of organisational growth, Tesla leverages a first-mover advantage and continues to innovate, revamping the much-loved vehicles in its lineup. The company is seen as a pioneer in this space, despite the long history of electric mobility innovation that preceded.
Instead, we see Tesla as a pioneer of the sustainable mobility era with a significant share of the power to change the automotive industry through electrification and renewable energy adoption. The company even provides the kit to store clean energy.
As a Group, Renault sold millions of EVs and the 2022 sales reached 2.1m, showing significant growth in the segment. However, to be declared a rival to Tesla it would have to fend off the company, which is seeing growth in the thousands every year—1.54% market share in 2021 and 2.26% in 2022.
This could potentially be determined by more than competition as the UK and European EV sales declined in recent months due to the cost-of-living concerns and prolonged high prices of electric cars in the region.
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