French car maker, Renault (EPA:RENA) announced Wednesday a substantial investment plan of 3 billion euros ($3.2B) to introduce eight new vehicles and amplify electric vehicle (EV) sales in markets outside Europe. This move marks a big step in the company’s plans to re-launch the French car brand globally.
As part of its 2021 strategy turnaround, the company has concentrated its efforts on the lucrative segments of the European market, particularly emphasizing EVs and compact models.
However, the recent loss of the Russian market, the second-largest for the group, due to the ongoing conflict following the Russian invasion of Ukraine, has intensified Renault's reliance on the European market.
Between January and September 2023, Europe accounted for almost 69% of Renault's total sales, marking an increase from 63% during the same period in 2022.
"As our product renewal is bearing fruit in Europe, we are now going to make the brand more global and more profitable," said Renault CEO, Fabrice Cambolive in a statement.
By 2027, Renault believes that EVs and hybrids should make up a third of sales outside Europe.
Renault unveiled its first addition to the global vehicle lineup, the Kardian, a compact SUV crafted from the Dacia Sandero. The reveal took place in Brazil on Tuesday, a significant event considering Brazil's status as the second-largest market for the Renault brand, just behind France.
Plans are underway to launch the Kardian in Latin America and Morocco next year.
These models will be built on two new platforms. The first modular platform will be used for the Kardian and a hybrid 4X4 pickup truck, and it will be utilized for production in Latin America, Turkey, Morocco and India.
Renault showcased a concept of the pickup, the Niagara, in Brazil. The second platform, created through a partnership with Geely (OTC:GELYY) in 2022, will focus on producing high-end vehicles in South Korea.
Renault Korea Motors is set to introduce its first vehicle based on this platform in 2024.