Renault is leveraging its low-cost hybrid gearbox technology, known as E-Tech, to strengthen its position in Europe’s growing hybrid car market, offering breathing room as the automotive industry faces pressure from the electric vehicle (EV) shift. While demand for costly EVs remains sluggish in Europe, Renault’s hybrid models, such as the Clio and Captur, saw a 55% sales increase in the first eight months of 2023, outpacing the EU’s average growth of 21.1%. This success makes Renault the second-largest hybrid car seller in Europe, behind Toyota.
Renault’s E-Tech system, built on simplified “dog clutch” technology, reduces the complexity and cost of hybrid transmissions, making them lighter and more affordable. This approach has given the company an edge over competitors in balancing hybrid and electric models. Renault’s shares are up 6.4% in 2023, despite industry challenges.
While hybrids help Renault reduce CO2 emissions, the company still lags in EV sales, which make up just 12% of its total in Europe. To meet stricter EU emissions targets, Renault will need to increase EV sales to nearly 20%. CEO Luca de Meo aims to boost Renault’s EV portfolio with upcoming models like the Renault 5 and Renault 4, set to launch at the Paris auto show.
Renault’s hybrid strategy offers short-term growth, but its long-term success will hinge on the performance of its new EV models.
