Renault plans to assemble a new small electric vehicle motor in France using components supplied by Chinese manufacturer Shanghai e-drive, the carmaker confirmed, as it seeks to reduce costs and defend margins in a subdued European market.
A Renault spokesperson said the motor would be assembled domestically despite relying on Chinese-sourced parts, underscoring the growing role of Chinese suppliers in Europe’s electric vehicle supply chains. The plan was first reported by L’Argus and follows earlier reporting by Reuters on Renault’s efforts to rein in EV production costs.
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Renault already imports small electric motors produced by Shanghai e-drive for its new Twingo model. The carmaker has previously said the vehicle was developed in less than two years, a timeline it attributed to close collaboration with the Chinese supplier and its engineering teams.
The confirmation comes after Reuters reported in November 2025 that Renault had ended a project with French supplier Valeo to develop a more powerful electric motor without rare earths, citing cost considerations and the evaluation of lower-cost alternatives from China.
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According to the Confédération Générale du Travail (CGT), Renault plans to assemble the entry-level motor at its Cleon plant in northern France. Management last week briefed staff on plans to install a new production line from early 2027, with annual capacity expected to reach up to 120,000 units.