E-Cars, the European alternative to save the electric car

The electrification strategy of the main European manufacturers has not been the most successful, given the sales volume of electric vehicles, the increased cost of the final product and the scenario of global political instability. A study by Jato Dynamics It points out that between 2019 and 2023, more than 3.3 million cars went unsold in Europe due to a lack of purchasing power, in a context of progressively rising prices for new models that has significantly affected mainstream brands such as Renault, Fiat, Citroën, and Seat, for example.

Renault's new CEO, Frenchman François Provost, has presented a plan to support European automakers while contributing to the decarbonization process promoted by European administrations. This roadmap involves the creation of a new, regulated automotive segment, with specific legislation, somewhere between current quadricycles and conventional passenger cars, heavily inspired by the kei-car Japanese. The kei-car (in Japanese) kei means littleThey are a peculiarity of that country: they have more competitive prices, favorable taxation and the favor of the general public.

Renault, with the explicit support of the French government and the country's major established manufacturers, is making a strong push for new regulations on light, economical, and urban electric vehicles, creating a new segment called E-Car. These vehicles, less than 4.1 meters long and with emissions of less than 15 tons of CO₂ during their production and lifespan, would be manufactured in Europe and designed for European drivers, in response to the threat posed by affordable Chinese electric vehicles.

The new E-Cars must be simpler to manufacture and require fewer parts, which facilitates the amortization of investments and production costs, making the final product more economical, significantly below the €20,000 threshold, and allowing them to reach European buyers with lower purchasing power.

In a recent interview with the specialized media CoachProvost also pointed out that "Europe should be able to force Chinese manufacturers to produce their cars in Europe" to create jobs and build a local supplier network. He also believes that European manufacturers cannot meet the EU's ambitious decarbonization targets and that "brands should be relieved of the burden of adapting their products to new environmental regulations" through "a ten- or fifteen-year moratorium."

Duties for European industry

In any case, major European automakers cannot compete with the Chinese by relying solely on institutional restrictions and administrative tariffs. It is essential that large automotive groups develop new, faster, and more efficient production models that allow them to keep production costs under control by optimizing available resources. Furthermore, Provost concludes that it is necessary to accelerate the development of new cars, since, as he himself states in the interview, "if you develop new models faster, you can reduce costs more and become more innovative than the rest."

The development process for a new car, from the initial sketches to the new model's launch in dealerships, takes an average of five years, while Chinese manufacturers have managed to reduce this process to just over two and a half or three years. European manufacturers, therefore, face a significant disadvantage when it comes to adapting a given model to a future context they cannot foresee, while the Chinese can more responsively adapt their product range to the real demands of buyers. New e-cars could be a tool that allows for greater flexibility and reaction time, enabling them to get ahead of Chinese brands and reach the urban or budget-conscious buyer segment, thus finally democratizing access to electric mobility. However, ultimately, none of these initiatives will be sufficient if governments do not promote an efficient charging network capable of meeting the demands of a fully electrified vehicle fleet.