Renault to Invest $3.17 Billion in Manufacturing 8 New Models Outside Europe

Revamping the Global Brand

Renault announced an investment of 3 billion euros (approximately $3.17 billion) over the next four years in developing and producing eight new vehicle models to be manufactured at its plants outside of Europe. The investment is part of Renault's project to relaunch its brand globally and boost the sales of electric and more profitable vehicles outside Europe, explained Renault's CEO, Fabrice Cambolive, during the presentation held in Rio de Janeiro.

The strategic plan envisions launching eight hybrid vehicles in markets across Latin America, North Africa, Turkey, and India, including five in the high-value-added segment. The plan's objective is to enable the company to achieve more profitable international growth and to reach a sales value outside of Europe in 2027, twice that of 2019, according to a Renault statement. Another goal is to have one hybrid or electric model for every three sold in foreign markets.

Shift in Market Dynamics

The company noted that countries outside of Europe were responsible for 43% of the 634,124 vehicles sold in 2022, and five of its top ten markets were also outside of Europe, with Brazil leading the way.

"With the 3 billion euros investment until 2027, the Renaulution strategic plan will allow the brand to improve its performance in regions of key and historical importance. Renault aims for a double-digit operating margin and a net price per vehicle multiplied by two outside of Europe by 2027, compared to 2019," the statement said.

The plan also involves adopting a new globally scoped common modular platform in plants outside Europe, increasing competitiveness and synergies in international markets. This platform allows for the production of vehicles between 4 and 5 meters in length, with new powertrains and various energy sources, particularly hybrids.

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Unveiling New Models

Renault seized the press conference to introduce the New Kardian, a compact SUV derived from the Dacia Sandero, which will be manufactured in Brazil and distributed throughout Latin America and Morocco from January next year. They also presented the conceptual model of the Niagara Concept, a pickup equipped with the new E-Tech hybrid 4×4 powertrain technology, which will also be produced on the new platform. These are the first two of the eight models Renault will launch outside Europe by 2027.