Nissan, Mitsubishi to Continue Partnership With Renault, Investing Millions in Its EV Unit Ampere

Nissan and Mitsubishi have confirmed their plans to invest in Renault's electric vehicle (EV) division, Ampere.

Nissan and Mitsubishi to Invest in Renault EV Unit Ampere

As outlined in Wednesday's presentation by Renault, the Japanese automakers, longstanding partners of Renault, confirmed they would contribute substantial amounts, with Nissan pledging up to €600 million and Mitsubishi up to €200 million to Ampere.

According to Euronews, the move comes as Ampere undergoes significant changes - having been separated from the broader Renault structure in November and with plans for a public listing next year.

Nissan CEO Makoto Uchida emphasized Nissan's role as a "strategic investor" in Ampere. He expressed interest in exploring the application of innovations from the EV unit, particularly in software and connectivity, to markets beyond Europe.

Additionally, Nissan is considering investment possibilities in Renault's circular economy initiatives, indicating a broader collaboration between the two automotive giants.

'Renaulution' Plan of Renault

Renault's comprehensive 'Renaulution' plan, initiated in November 2022, focuses on transforming the company into a next-gen automotive entity with a strong emphasis on electric vehicles, software, new mobility services, circular economy practices, and high-end vehicles, in addition to internal combustion engine (ICE) and hybrid vehicles.

Ampere plays a pivotal role in this transformation, operating as an independent company responsible for designing, engineering, manufacturing, and marketing electric passenger cars under the Renault brand in Europe.

Ampere aims to focus on achieving zero-emission and advancing software development. The division aspires to attain a double-digit market share with a double-digit operating margin by 2031, targeting European core vehicle segments.

The carve-out of Ampere from Renault was completed on November 1. Ampere boasts 11,000 employees, with a significant portion dedicated to engineering and focusing on EV and software technologies.

According to Renault, the division benefits from established assets, including two EV-native platforms and an industrial ecosystem with low carbon emissions in France.

Democratizing EV Adoption in Europe

Ampere's approach involves democratizing EV adoption in Europe, particularly in the B and C-segments, which are anticipated to represent 75% of the European EV market by 2030.

In order to achieve this, Ampere aims to reach EV/ICE price parity in these segments before competitors. The division's competitive advantage lies in its cost-effective EV-native platforms, AmpR Small for the B-segment and AmpR Medium for the C-segment.

Ampere has outlined a roadmap to reduce costs further, targeting a 40% reduction in variable costs for the second generation of C-segment electric vehicles by 2027/2028.

Ampere has achieved Total Cost of Ownership (TCO) parity with hybrid vehicles with the Scenic E-Tech model through continuous cost reduction initiatives.

The division anticipates reaching EV/ICE price parity by 2027/2028 with the introduction of the second generation of vehicles, such as successors to Megane-E-Tech and Scenic E-Tech.