Rivian is poised to disrupt the market with its upcoming R2 model, priced starting at approximately $45,000, aiming to attract a new segment of buyers. The company’s strategy to maintain its rugged luxury appeal at a lower price point is a topic of interest, as explained by Rivian’s design chief.
Following the unveiling of the more compact and affordable R2, Rivian’s CEO RJ Scaringe announced that the new electric SUV has already garnered over 68,000 reservations in less than 24 hours.
Compared to the current R1S and R1T models, which start at $74,900 and $69,900 respectively, the R2 represents a significant price reduction. Despite its smaller dimensions (4,715 mm long, 1,700 mm tall, with a 2,935 mm wheelbase), Rivian assures that the R2 will maintain the brand’s distinctive identity.
Jeff Hammoud, Rivian’s design chief, highlighted the challenge of maintaining the brand’s essence at a lower price point. He explained that with the R1 models, Rivian had more flexibility in including premium features and design elements. However, with the R2, price constraints were more pronounced.
Speaking with Design Milk, Hammoud emphasized Rivian’s goal of expanding its customer base with the R2 while ensuring that the vehicle does not feel cheap or diluted. He stated that the company made a deliberate effort to make the R2 feel like a smaller version of the R1S, focusing on key design elements to maintain brand recognition.
Hammoud expressed excitement about the R2’s new steering wheel design, featuring advanced roller wheels that offer various control options. These include rotation for volume adjustment and tactile feedback for menu navigation, allowing drivers to stay engaged without distractions.
In addition to its unique design, the R2 will offer a range of accessories, including an upgraded camp kitchen, tent, and bike rack, enhancing its appeal for adventurous drivers.
Looking ahead, Rivian plans to commence R2 production in the first half of 2026 at its Normal, IL plant. The company has implemented upgrades enabling it to increase production capacity to 215,000 vehicles annually, up from the previous 150,000, while reducing costs.
