Renault will build a new small electric vehicle (EV) engine in France using parts supplied by China’s Shanghai e-drive, a spokesperson for the carmaker said on Tuesday, as it looks to reduce costs and protect margins in a sluggish European market.
Renault imports small electric engines made by Shanghai e-drive in China for its new Twingo, a car developed in less than two years thanks to input from the Chinese supplier and engineers.
Reuters reported in November Renault had ended a project with France’s Valeo to develop another, more powerful EV motor without rare earths and was considering a cheaper Chinese supplier instead.
Confirmation of plans for the new small engine was first reported by French automotive media L’Argus.
Renault will assemble the entry-level engine at its factory in Cleon in Northern France, setting up a new production line from early 2027 to make up to 120,000 engines per year, the CGT union said after a briefing by management of the Renault plant last week.
Reuters
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