Vive l’ÉVolution!

In 1917, French automobile manufacturer Renault rolled out one of the most influential, and pioneering, light tank designs in History - the FT-17. Since then, their success has hinged upon the popularity of similarly light “Supermini” consumer cars, such as the Renault Clio, and their latest nostalgia-provoking Renault 5 EV hatchback.

Meanwhile, the wider European car market, particularly its German forerunners such as BMW and Volkswagen, are in turmoil, as EVs made by Chinese hands are increasingly steered by Europeans’. Back in May 2024, almost a fifth of EVs sold in Europe had been manufactured by China.

In the midst of this, many smaller car brands have forged alliances to strengthen market share and foster innovation. Renault itself has been in a ‘strategic partnership’ with Japanese motor manufacturer Nissan since 1999, with Mitsubishi joining in 2016. More Recently however, Renault has ‘redefined’ its role within this coalition, reducing its shared stake with Nissan down to 15%, both ways.

Here’s why Renault’s likeliness to weather the Chinese EV storm, may not hinge on corporate alliances at all. The car brand has always enjoyed a strong foothold in the European car market, yet has gained particular success in the UK over recent years. 

According to Autocar, the French company sold 71,000 vehicles in the UK market over 2023, then went on to register 86,300 in 2024, equating to a 3.7% market share.

It is slightly ironic that a nation disposed to an occasional light-hearted rivalry with the French - and a substantial motorist culture to boot - are highly fond of Renault’s slick hatchbacks and budget-friendly SUVs.For good reason, as well. The Renault Clio and other derivatives are highly rated across motoring watchdog websites and first-time car buyers alike. Across Europe, Renault sold almost 220,000 units in the continent (Motor1.com) whilst achieving a 6.5% growth increase from last year. 

Its Clio surpassed even the venerable Volkswagen Golf by 20 units. As the likes of Mercedes-Benz flounder in the face of EV emergence, Renault’s hybrid Clio and fully-electric “5” are well-positioned to defend the brand’s tricolours. 

This has no doubt been helped by the gradual endangerment of the hatchback/small car category as consumers turn to SUVs and crossovers - Renault has eagerly filled such gaps.There is a gap to be filled where Electric Vehicles are concerned, however. In 2023, about 25% of the luxury EV market consisted of sedans - or saloons, in the UK (Verified Market Reports). 

Worse, by the end of 2024 in Germany, 56.7% of offerings were SUVs (Ecomento). Why worse? These new, mid-size sedan and SUV EVs are sold at substantially higher prices compared to their closest petrol/diesel counterparts, excluding consumers at the value end of the market. 

Even in used markets, the relative novelty of the Electric Vehicle means pickings aren’t exactly generous either. 

This is also one of the reasons Chinese BYD has seen so much success - they offer their sedans and SUVs at relatively lower prices compared to the German manufacturers. While most consumers could expect to make savings on Electric Vehicles through eschewing the burgeoning costs of petrol or diesel, the entry-level prices are too high. Which is why Renault’s decisions to integrate their ‘e-tech’ hybrid system into the Clio lineup, and reimagine the venerable Renault 5 into a futuristic EV hatchback have earned them a far more positive outlook in the coming years. 

The Renault 5 ‘E-tech Electric’ not only promotes nostalgia for the bygone era of affordable, efficient and indestructible hatchbacks, yet is also priced at £23,000 new for the entry-level model. Compare that to the cheapest Tesla Model 3, which clocks in at about £40,000. 

Renault has the potential to corner the lower end of the EV/hybrid economy market.But where does Nissan fit into all this? Perhaps it doesn’t. 

Romanian Dacia, having been under the Renault ‘French Republic’ since 1999, is firmly entrenched in the European budget SUV market - and achieved a 4.5% market share in 2024 for the European passenger car segment, up by 0.1 percentage points from 2021. 

For a brand previously the butt of jokes in UK car show ‘Top Gear’, this is impressive.

Renault’s technology initiatives, such as the hybrid E-tech system, AmpR Small (the EV blueprints developed by its subsidiary Ampere) and battery supply partnership with French startup Verkor are all inhouse achievements. 

When it comes to the latest campaign of Renault’s reimagined Renault 5 EV, Nissan has upheld its side of the alliance through unveiling its Micra EV - with the same AmpR Small architecture shared by Renault. 

For a blunter indicator of who’s in the driver seat in this corporate alliance, then look to who released their hatchback reincarnation first. The 5 was released in January - the Micra is still yet to release.As part of their marketing campaign for the reimagined 5, Renault released a promotional video in March featuring eclectic themes of the French revolution, retro-futurism and pure-hearted fun - backed by the electronic groove of Daft Punk’s ‘Instant Crush’. 

Not only a metaphor for the combination of retrospection and progression Renault is instilling into its brand, it also proudly stated that ‘R5VOLUTION IS A FRENCH THING’. 

Its independent technological initiatives are a formidable strength, placing it in a key position to further cement itself into the affordable EV/hybrid battleground. 

Nissan will remain in the passenger’s seat, if only for its presence in Asian markets and the necessity for coalitions in the fraughtly-dynamic motoring industry. 

Renault is at the wheel, and in regards to its future opportunities in the affordable EV segment, only one phrase seems apt. 

Vive la révolution..