Renault Taps AI to Cut EV Production Costs in Half by 2027

Carmaker Also Aims to Cut Production Times From Three Years to Two
Renault Rafale
A Renault Rafale electric vehicle. (Krisztian Bocsi/Bloomberg News)

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Renault SA is deploying artificial intelligence technology to help slash the cost of producing electric vehicles in half by 2027 as the race to make affordable mass-market cars intensifies.

The carmaker also wants to reduce vehicle development times to two years from three years, it said Dec. 7 in a statement laying out a plan to make its manufacturing base more competitive. The measures should cut costs to make internal combustion engine cars by 30% over the same period.

The steps are part of a major transformation at Renault, which this year reshaped its decadeslong alliance with Nissan Motor Corp. The French manufacturer plans to list its EV unit Ampere next year, targeting a valuation of as much as 10 billion euros ($10.8 billion), with both Nissan and Mitsubishi confirming significant investments.

Renault already uses more than 300 AI applications to trace car parts and bolster quality control, and now aims to increase that number to 3,000 by mid-decade. The company has built an industrial metaverse that saved the group 270 million euros this year, mainly through predictive maintenance on installations.

Knocking 50% off EV production costs would mark a significant step toward competing with Chinese manufacturers entering the European market with cheaper cars. CEO Luca de Meo will introduce a much-anticipated Renault 5 priced at 25,000 euros next year and is rejuvenating the Twingo for the electric era for less than 20,000 euros from 2026.

As part of the industrial shift announced Dec. 7, Renault said it will manufacture four new models between now and 2027 at its Bursa site in Turkey. The company has halved capital expenditures over the past four years and will be able to launch 12 new models next year, according to the statement.

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