Renault Group has established a new R&D team in Shanghai, marking its first effort to develop an electric vehicle (EV) outside Europe, according to a report from Chinese media outlet AutoPix.
The carmaker aims to leverage China’s extensive supply chain to streamline production processes, although manufacturing and sales of the new model will be centered in Europe, with production set to begin by late 2025.
Since 2021, Renault has taken steps to adopt a lighter asset approach in China, prioritizing cost reductions. The new Shanghai-based team, operational since early this year, focuses on EV design and reports directly to Renault’s French headquarters, bypassing the typical reporting channels of Renault China.
While other European automakers like Volkswagen, BMW, and Mercedes-Benz use their Chinese R&D teams to develop EVs for local and global markets, Renault’s strategy is to exclusively target Europe and other overseas markets.
With fierce domestic competition from brands like BYD, Leapmotor, and Nio, Renault has opted not to prioritize expanding its market share in China. Instead, the automaker is focused on building a comprehensive EV R&D system in China, potentially encompassing both hardware and software development, as it seeks to enhance its global competitiveness in the EV sector.