Finance
Renault to use Chinese parts for EV engine to be assembled in France
Published by Global Banking and Finance Review
Posted on February 3, 2026
2 min readLast updated: February 3, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on February 3, 2026
2 min readLast updated: February 3, 2026
Renault plans to assemble a new electric vehicle engine in France using parts from China's Shanghai e-drive, aiming to reduce costs and protect margins in Europe.
By Gilles Guillaume
PARIS, Feb 3 (Reuters) - Renault will build in France a new small electric vehicle engine using parts supplied by China's Shanghai e-drive, a spokesperson for the carmaker said on Tuesday, as it looks to reduce costs and protect margins in a sluggish European market.
Renault already imports from China small electric engines made by Shanghai e-drive for its new Twingo, a car it developed in less than two years thanks to input from the Chinese supplier and engineers.
Reuters reported in November that Renault had ended a project with France's Valeo to develop another more powerful EV motor without rare earths, and was considering a cheaper Chinese supplier instead.
Confirmation of plans for the new small engine was first reported by French automotive media L'Argus.
Renault will assemble the entry level engine at its factory in Cleon in Northern France, setting up a new production line from early 2027 to make up to 120,000 engines per year, the CGT union said in a statement published after a briefing by management of the Renault plant last week.
($1 = 0.8466 euros)
(Reporting by Gilles Guillaume; Editing by Dominique Patton and Emelia Sithole-Matarise)
An electric vehicle (EV) is a type of vehicle that uses electric motors for propulsion instead of traditional internal combustion engines, making them more environmentally friendly.
Rare earths are a group of 17 chemical elements that are critical in the manufacturing of various high-tech devices, including electric vehicle batteries and magnets.
A production line is a set of sequential processes through which a product passes from start to finish, allowing for efficient mass production.
Cost reduction in manufacturing refers to strategies and practices aimed at decreasing production costs while maintaining product quality and efficiency.
A supply chain is a network of organizations, people, activities, information, and resources involved in supplying a product or service to a consumer.
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