About the company
Founded in 1899, the Renault Group is headquartered in Boulogne-Billancourt, France. It is one of the leaders in the high-tech and low-carbon automotive industry, focusing on the development of electric vehicles and improving the efficiency of internal combustion engine vehicles and hybrids. The carmaker operates in the market through its four main brands Renault, Dacia, Alpine and Mobilize. It is also dedicated to light electric commercial vehicles and hydrogen mobility solutions, while its newest brand, Mobilize, emphasizes smart electric mobility. In addition, the French company is also involved in financing and investing in other car companies such as Nissan. With more than 100,000 employees globally, Renault is committed to a circular economy approach that reduces resource consumption through material recycling initiatives.[1][2]
Advanced Centre in China
Renault started operations at its new Advanced Development Centre (ACDC) in Shanghai in the second half of January 2025. The vision of the carmaker's CEO, Luc de Meo, is to be able to develop an affordable car in less than two years, whereupon the vast knowledge, speed and efficiency of China's EV experts will be harnessed. Interestingly, the facility will be used only to develop EVs for Renault, with the actual production taking place in Slovenia and the cars going only to the European market. According to China Daily, it will be, for example, the upcoming Twingo E-Tech model, which should be introduced next year with a price of less than €20 thousand. The centre currently employs about 150 experts specialising in various fields. By setting up the ACDC, the French company is integrating cutting-edge technologies in order to remain competitive in an ever-evolving global electric vehicle environment.[3]
Strengthening in the Chinese market
Although Renault does not sell cars on the Chinese market, it works with a number of local companies, allowing it to benefit from China's leadership in this way too. One of these is the collaboration with state-owned Dongfeng, which produced the Dacia Spring. This has become a European bestseller with more than 60,000 units sold annually. Together with Geely, they formed the HORSE Powertrain joint venture in the UK, focusing on solutions for combustion engine and hybrids, and extended their collaboration to South Korea with the Grand Koloseo SUV. Renault has strengthened its supply chain with companies such as CATL and Minth, and has also partnered with China's WeRide, which is dedicated to autonomous driving.[4]
Steps to promote sustainability
The carmaker's commitment to ecology and sustainability is demonstrated by the opening of Europe's first used car refurbishment plant. Located in Sękocin, near Warsaw, customers can have their used cars refurbished here, extending their useful life. Repairs include both interior and exterior modifications. After refurbishment, these vehicles are resold with a special warranty and a special "Refactory certified" label, guaranteeing quality, reliability and compliance with Renault's strict standards. Eco-friendly and sustainable practices are used throughout the process, supporting the company's broader objective of promoting a circular economy with minimal waste and the lowest possible consumption of resources.[5]
Sales were among the best
The group, according to a report published on 16 January 2025, had a solid 2024. Its total global sales exceeded 2.26 million vehicles, up 1.3% on 2023. The Renault division led the way with 1.8% growth in the number of vehicles sold, followed by Dacia with 2.7%. The Alpine brand saw the biggest year-on-year change, with sales up 5.9%. In Europe, the Group outperformed the market with a 3.5% increase, with the Renault Sandero standing out as the best-selling car. Outside Europe, the key markets of Brazil and South Korea recorded a remarkable performance. In Brazil, sales increased by more than 10% thanks to the Kardian model and in South Korea by 80.6% following the launch of the Grand Koleos. The focus on electrification also paid off as EVs and hybrids accounted for a significant portion of sales. Hybrids accounted for 25.5% of total sales, reflecting a 45% increase, while EVs accounted for 9%. Going forward, the Group plans to continue its electrification drive, with 7 new models planned for launch by 2025, including the Renault 4 E-Tech EV and the Dacia Bigster.[6] According to data from the European Automobile Manufacturers Association, Renault's EU market share rose to 11.9% last year, overtaking even Stellantis at 11.6% for the first time. There was also a big difference in Renault's new car registrations. Their number grew by more than 16%, which was much higher than the 4.9% of the German Volkswagen Group.[7]
Shares on the rise
Renault shares have gone through several periods of declines over the past 5 years, yet their trend has been upward. The more significant corrections occurred in 2020, 2022 and last autumn. As of 21 January 2025, the carmaker's shares were trading at €48. This was an increase in value of 2.5% since the beginning of the year and a year-on-year increase of around 37%. In 5-year terms, the shares have risen by more than 36%, with a peak over that period of €53.5 reached in May 2024.*
Renault's share price development over the last 5 years. (Source: Trading Economics)*
Conclusion
Renault's new hub in China represents a strategic move to accelerate the development of electric vehicles and strengthen its global competitiveness. The collaboration with Chinese companies such as Dongfeng and Geely and the integration of cutting-edge technologies show how Renault can effectively leverage the strengths of the Chinese market to improve its portfolio. The focus on sustainability and electrification in turn reflects current trends in the automotive industry.
*Past performance is no guarantee of future results.
[1] https://www.renaultgroup.com/en/group
[2] https://www.investing.com/equities/renault-company-profile
[3] https://finance.yahoo.com/news/renault-r-d-centre-taps-121811723.html
[4] https://www.chinadaily.com.cn/a/202501/20/WS678db15fa310a2ab06ea8021.html
[5] https://tvpworld.com/84597293/car-giant-opens-first-european-car-recycling-factory-in-poland
[6] https://ml-eu.globenewswire.com/Resource/Download/3dac6d14-97c4-4503-ae11-221b340bd5df
[7] https://www.investing.com/news/economic-indicators/european-car-sales-up-09-in-2024-renault-overtakes-stellantis-in-dec-acea-says-3820903
