Renault to invest over 10 billion euros in France over next five years

French carmaker Renault Group will invest more than 10 billion euros in its home country over the next five years. The announcement was made by the company's CEO, Francois Provost.

The investment will focus on two things: speeding up production of electric vehicles, and offering customers vehicles priced to fit their budgets. The decision is being seen as significant amid rising demand for electric vehicles, growing competition from Chinese carmakers and changes in Europe's auto industry.

Renault will give electric vehicles greater space in its French production. Under the company's new policy, the focus is on increasing the number of electrified vehicles in Europe. Renault plans to launch a large number of new models by 2030, with electric vehicles making up a big share. According to the company, it will try to bring EVs within reach of more people by cutting production costs and using new technology.

The biggest challenge in the electric vehicle segment is the price. An important part of Renault's new investment will therefore go into building affordable vehicles. The company's budget brand Dacia is also concentrating on low-priced electric vehicles.

To counter cheap EVs coming from China into Europe, Renault wants to raise local production. The plan to make the Dacia Spring electric car for Europe in Slovenia instead of China is an important step in this direction.

According to Renault, the company has invested about 13 billion euros in France over the past five years. It is now preparing to invest more than 10 billion euros over the next five years. The company expects to build about 625,000 vehicles in France in 2026.

This figure is about 25 per cent higher than last year. Electric vehicles will account for a large part of this increase. It is therefore believed that Renault's decision could boost vehicle production, jobs and EV technology development in France.