The success of hybrid cars is helping Renault in the transition to electric vehicles

Renault boss Luca de Meo’s bet on low-cost gearbox technology is allowing the French carmaker to gain ground in the fast-growing European market for hybrid cars, with rivals plagued by problems with related to electric mobility, reported by Agerpres.

Demand for expensive electric vehicles (EVs) is low in Europe, even as the EU’s ban on cars powered by combustion engines comes into force in 2035, putting pressure on the European car industry.

The Renault company, which is smaller than other car companies and affected by the highest losses in 2020, shows remarkable stability in the segment of hybrid cars, which use both engines thermal and electric engine.

In the first eight months of 2024, sales of Renault hybrid models, including the Clio and Captur, rose 55% compared to the same period in 2023, compared to a 21.1% advance throughout the European Union. Therefore, the Renault brand is the second largest in Europe in the segment of hybrid cars, after the Japanese group Toyota.

“Renault seems to be doing very, very well. We believe that the company is simply more versatile and flexible than its competitors”, argued the analysts from Stifel after the company announced on October 8 that it is maintaining the goals their financial position, as one of the few car manufacturers that did not worsen their forecasts, against the backdrop of difficult market conditions.

Demand for hybrids is expected to continue growing until the end of the decade, before EVs take over, according to Dataforce and S&P Global.

With a market capitalization of around 11.6 billion euros, Renault is worth only a quarter of European leader Volkswagen.

Luca de Meo will unveil the new Renault 4 electric SUV at the Paris Motor Show, following the recent launch of the Renault 5, another small EV.