Why Are Electric Cars Still So Expensive in Europe?
If you’ve ever looked at the price tag on a new electric car and felt your jaw drop, you’re not alone. François Provost, the new CEO of Renault Group, is right there with you. In his first major media appearance, Provost didn’t mince words: the real challenge for the European car industry isn’t just making more EVs—it’s making them affordable for everyday people.
It’s a concern that’s echoed across the continent. According to the European Automobile Manufacturers Association (ACEA), the average price of a new electric vehicle in Europe is still significantly higher than its petrol or diesel counterpart. And while government incentives help, they’re not closing the gap fast enough. Provost believes that instead of piling on more regulations or setting ambitious sales quotas, lawmakers should focus on what actually matters to consumers: cutting costs.
What’s Driving Up the Cost of Electric Vehicles?
Let’s break it down. The biggest culprit is the battery. Lithium-ion batteries, which power most EVs, are expensive to produce and rely on raw materials like lithium, cobalt, and nickel—commodities that have seen wild price swings in recent years. Add in the cost of research and development, new manufacturing lines, and the need for advanced safety features, and it’s no wonder prices are high.
Provost points out another factor: Europe’s regulatory environment. While well-intentioned, strict emissions rules and targets can sometimes force automakers to rush new models to market before costs have a chance to come down. The result? Higher sticker prices for consumers and, ironically, slower progress on reducing overall carbon emissions.
How Is Renault Tackling the Challenge?
Renault isn’t just sitting back and hoping things get better. Under Provost’s leadership, the company is doubling down on its Renaulution plan—a strategy that focuses on building a strong, refreshed lineup of vehicles for Europe, with an eye on both electric and traditional models. The company’s Ampere and Horse divisions are working in tandem: Ampere pushes forward with EV innovation, while Horse keeps internal combustion engine (ICE) development competitive and efficient.
One of Renault’s boldest moves has been to speed up its model development cycle. The goal? Bring new cars to market in less than two years. That’s lightning-fast in the auto world, and it means Renault can respond more quickly to changing consumer tastes and market conditions. The recent revival of the Renault 5 and 4 as small, stylish EVs is a perfect example—these cars tap into nostalgia while offering modern, eco-friendly performance.
Can European Carmakers Compete With China?
It’s no secret that Chinese automakers are making big waves in Europe, especially in the EV space. They’re fast, agile, and often able to undercut European brands on price. But Provost is confident that Renault has a secret weapon: design and emotion. He argues that European brands, and Renault in particular, excel at creating cars that people actually want to drive—not just appliances on wheels.
Renault is also investing heavily in customer engagement, working closely with dealers to ensure buyers feel valued and supported throughout the ownership experience. In a market where trust and reputation matter, this could be a key differentiator.
What About the 2035 Ban on Petrol and Diesel Cars?
The European Union’s plan to ban the sale of new non-zero-emission cars by 2035 is a hot topic. Provost’s take? Don’t get too hung up on the date. He believes the focus should be on making EVs affordable now, not just hitting a future target. If prices remain out of reach for most people, the transition to electric mobility will stall—and the environmental benefits will be lost.
He’s also quick to point out that the job of building a sustainable EV market can’t fall solely on car manufacturers. Issues like charging infrastructure and the cost of electricity are just as important. According to a recent report from the International Energy Agency (IEA), Europe needs to triple its public charging network by 2030 to meet projected demand. Without that investment, even the best EVs will struggle to gain traction.
How Is Renault Handling Market Pressures Like Discounting?
With new-car discounting on the rise across Europe, some worry that automakers will be forced into a race to the bottom. Provost’s approach is measured: follow the market, but don’t do anything reckless. The focus remains on reducing costs and delivering value, rather than chasing volume at any price. It’s a strategy that prioritizes long-term stability over short-term gains—a lesson learned from past industry booms and busts.
What’s Next for Renault’s Formula 1 Team?
For fans of speed and spectacle, there’s good news: Renault’s Alpine-branded Formula 1 team isn’t going anywhere. Despite recent struggles, Provost is optimistic about the future. The team is set to switch to Mercedes powertrains next year, and with stable management and strong sponsorships in place, there’s a sense that better days are ahead. Success in F1 isn’t just about winning races—it’s about showcasing innovation and building brand excitement, both of which feed back into Renault’s broader strategy.
The Real Takeaway: Value Over Volume
At the end of the day, Provost’s message is clear: the path to a sustainable, competitive European car industry runs through affordability, not just ambition. Cutting EV prices, investing in infrastructure, and focusing on what customers actually want—these are the keys to success. It’s not rocket science. But it does require a shift in mindset, from regulators and manufacturers alike.
If you’re in the market for a new car—or just curious about where the industry is headed—keep an eye on Renault. The company’s next chapter promises to be both practical and bold, with a focus on delivering real value in a rapidly changing world.