Ampere, the electric division of Renault, will have to wait to see the light

In an unexpected turn, Renault has decided to set aside the idea of floating on the stock market its electric car and software division that promised to stand out in the market, Ampere. The reason? Last year went very well for the company, which gave it the financial muscle to drive future developments, so the brand believes it can evolve more and gain greater agility in manufacturing its BEV models, but mind you, affecting its strategic plans as little as possible.

All of this stems from the ambition of the Renault team, which has identified several goals in its project. First, a roadmap that promises to reduce the cost of electric cars by up to 40%, allowing it to gradually position their prices. And further on, launch a technology plan that would make any geek smile, with software and AI solutions such as OpenR Link, Reno Avatar, and Software-Defined-Vehicle.

But this doesn’t end here: the company says that this year it will receive the Scenic, Renault 5, Renault 4, Twingo and two more aces up its sleeve. And the cherry on top: Renault Group will remain the fairy godmother, financing Ampere’s development until it reaches breakeven in 2025. All the objectives announced during the Ampere Capital Market Day remain as firm as on day one. Furthermore, don’t worry, this will not make Renault Group change its financial course or its capital allocation strategy.

Checkmate for the stock market: 10 billion or better not to play?

Renault, with its diamond logo held high, aspired to achieve a valuation of 10 billion euros for Ampere. But what happened? Bets were heading down, and instead, it found itself barely reaching 5 billion euros. At the end of last year, they already warned that if the valuation was too low, the operation would be cancelled, and bingo, that is exactly what happened.

Some analysts point out that sector growth will stall in 2024, which is why Renault, the French brand, reading the signals, has decided to halt the stock market flotation and make the more conservative move.

Ampere plays with an advantage, and it has a guinea pig thanks to which it has chosen not to play the same card, Polestar. Its shares have been stagnant for some time, depending on Geely and Volvo to secure its future, and it recently announced the elimination of 450 jobs worldwide. Will Renault learn the lesson?

Ampere’s future goals

Ampere has ambitious goals: it expects to sell 300,000 electric cars a year by 2025 and one million in 2031. The electric lineup of Renault in Europe is going to be worthy of a fashion show, with seven incredible models: Twingo, R5, 4EVer, Mégane, Scénic, a seven-seat SUV and a «coupé» SUV. Oh, and let’s not forget the proposals from Alpine and Dacia.

This division will also work on developments for Mitsubishi, Nissan and probably Volkswagen. Although it has jumped off the stock market flotation boat, the Japanese brands will maintain their bet on Ampere. And Qualcomm? It is not yet known, but everything points to them continuing to collaborate.

Ampere’s mission is clear: to achieve price parity between electric and combustion cars before its rivals by reducing the development and production costs of its next generation of models by roughly 40%.