Renault Sees 50% Surge in European Electric Vehicle Orders Due to Iran War
Renault's Response to Increased Electric Vehicle Demand
By Gilles Guillaume
Surge in Orders Following Iran War
BRUSSELS, June 10 (Reuters) - Renault's electric vehicles order book is up by 50% in some markets, such as France and Germany, since the Iran war started, Renault Group CEO Francois Provost told Reuters in an interview on Wednesday.
Supply Chain and Production Challenges
Provost said Renault had no problems in terms of sourcing batteries but the company was having to work hard to keep up with demand for electric vehicles, and it was setting up a task force to tackle this matter.
"We're currently exceeding the capacity (of our suppliers) because of the war in Iran," he said.
Plans for Increased Production Capacity
The French automaker is also considering adding more production shifts in the second half of the year at its EV factories at Douai and Maubeuge in France and Novo Mesto in Slovenia, Provost said.
Market Trends and Future Outlook
Demand for EVs has surged across Europe as high fuel prices linked to the Iran war boosted interest in both new and second-hand EVs.
In the first four months of the year, sales of fully electric cars in Europe jumped 29% to almost 1 million units.
Expectations After the Iran War
Provost said that when the Iran war does end and fuel prices do come down, the intense level of interest in EVs "will decrease" but the pace of the shift to electric will continue to accelerate.
"We have already revised our assumptions," for EV sales, Provost said.
Battery Technology and Cost Reduction
The French automaker's CEO said that in the medium-term he would like Chinese battery maker Envision AESC to start making lithium-iron-phosphate batteries at its plant in Douai.
Advantages of LFP Batteries
LFP batteries are much cheaper than traditional EV batteries and do not use cobalt and nickel and now dominate the EV market in China.
Impact on EV Affordability
Batteries often make up to half the cost of an EV, so switching to LFP batteries would enable Renault to sell more affordable electric cars to consumers.
(Reporting by Gilles Guillaume;Editing by Inti Landauro, Sudip Kar-Gupta and Louise Heavens)
