Renault to invest €10 billion in French EV and affordable car production

Francois Provost, chief executive of the Renault Group, stated that the company will allocate more than €10 billion (approximately $11 billion) to investments in France over the next five years. This capital is designated for expanding electric vehicle capabilities and producing more affordable automobiles.

The announcement follows a period where the group invested €13 billion ($14.64 billion) in France during the previous five-year cycle. That earlier funding supported a complete transformation of its industrial footprint and a strategic shift toward electric mobility. Provost noted that if the social and political context permits, the new investment will continue this expansion while aiming to make cars accessible at lower price points.

Market share shifts to Chinese brands

Electric vehicles reached a record high of 42% of total new car registrations in France last September. This surge occurred amid rising fuel prices, which drove increased consumer demand for electrified models.

While European auto sales are growing, the benefits are not distributed evenly among manufacturers. In August, Chinese brands increased their market share to 11.3%, up from 7.1% a year prior. Conversely, the three largest European groups—Volkswagen, Stellantis, and Renault—saw their combined share decline despite overall market growth.

Production volumes rise in France

Provost emphasized that current output levels in French factories exceed historical figures. The company produced 500,000 vehicles in 2025 and expects production to increase by at least 25% in 2026, driven largely by the ramp-up of electric vehicle manufacturing.

Data from the European Automobile Manufacturers Association (ACEA), cited by Reuters, shows that new car registrations across the EU, UK, and EFTA countries rose 5.3% in August to 832,600 units. This compares to approximately 791,000 units registered in the same month of 2025.

Company-specific performance metrics

Individual corporate results reveal diverging trends within the major European players. Volkswagen’s sales fell 3.6% in August, and Renault’s declined by 4.4%. However, Stellantis recorded a 3.5% increase during the same period.

Chinese competitors demonstrated significant momentum. BYD boosted its August sales by 127.9% to reach 26,000 units. Chery saw a nearly 217.5% jump to 22,700 units, while Leapmotor’s sales surged by approximately 219.5%. SAIC also reported growth exceeding 32%, according to ACEA data.