The Renault Group has announced an ambitious five year plan to increase its electric vehicle offerings, reduce its reliance on diesel engines, and dramatically grow sales and profits.
At the core of the company's new Drive The Future strategy are 21 new cars, including three "add-ons", due before the end of 2022. Renault Group vehicles are primarily sold under the Renault, Dacia and Lada marques.
As part of its lineup, the company will offer eight pure electric vehicles, 12 electrified models, and a "complete electric LCV (light commercial vehicle) range".
Above: The electric Renault Zoe.
In "key markets", Renault will also offer "100 per cent connected vehicles", as well as 15 vehicles with autonomous driving, reportedly between level two and level four depending on the model.
Last month, the Renault Nissan Mitsubishi Alliance announced a new electric vehicle platform that will support self-driving technology.
According to Autocar, Renault will reduce its number of diesel engine offerings by half, and cut the number of diesel engine families from three to one.
By 2022, 80 per cent of Renault's models will be based on common platforms shared with the rest of the Renault Nissan Mitsubishi Alliance. Renault expects to invest 18 billion euros ($27 billion) in research and development over the next six years, and extract savings worth around 4.2 billion euros ($6.3 billion).
Above: Mitsubishi recently joined the Renault Nissan Alliance.
If all goes according to plan, Renault's sales will grow from 3.5 million per annum at the end of 2016 to five million in 2022. While sales in Europe will remain flat at 1.8 million units annually, sales in all other regions are expect to grow significantly.
Eastern Europe and Russia will grow from 649,000 cars to 1.1 million; Africa, the Middle East and India will expand from 491,000 to over 850,000; and South and Central America will increase from 354,000 to 600,000.
Most importantly for us, sales in the Asia-Pacific and China are forecast to grow from just 167,000 to 700,000, a four-fold increase. Key growth markets are expected to be Brazil, China, India and Iran.
Above: Renault Kwid, originally designed for India.
The company's revenues are envisioned to grow from 51 billion euros ($77 billion) at the end of 2016 to 70 billion euros ($106 billion) by 2022, with an operating margin of between five and seven per cent.
At the plan's launch, Carlos Ghosn, CEO of Renault, said, "Groupe Renault is now a healthy, profitable, global company looking confidently ahead. Drive the Future is about delivering strong, sustainable growth benefiting from investments in key regions and products, leveraging Alliance resources and technologies, and increasing our cost competitiveness".