Renault Invests Heavily in Electric Cars
When it comes to making a commitment to renewable energy sources, Renault is really taking a stand. The automaker is promising that, within five years, at least half of its models will be either hybrid or fully-electric.
But that’s not the only automotive category that Renault is working to find space in. The company is enthusiastically committed to investing in automation, what some have called “robo-vehicles.”
These goals are all part of an intricate strategic plan Renault recently unveiled, a program that the company hopes will kick-start its revenue stream, increasing it nearly 20 billion euros over the next five years.
In addition to investing heavily in electric cars and automation, the plan calls for a strong increase in sales in both Russia and China. This will compel Renault to expand heavily beyond its current and longstanding European markets. The ultimate goal, for Renault, is to increase sales to a consistent five million units per year by 2022.
To help prepare for this effort, Renault is working with Nissan and Mitsubishi, using cooperative efforts to save money and increase market reach. Another strategy is to increase the focus on low-cost production, specifically focused on emerging markets, especially in China.
China, for many international automakers, is a golden goose that must be plucked. They see both the increasing modernization and capitalist attitudes, as well as the sheer number of potential customers as a vital target for success.
Renault is hardly alone in these calculations. American, Japanese, and other European automakers all want a piece of what is, without a doubt, a massive slice of the international auto market. And there are also domestic automakers to contend with, as well as a strongly nationalist-leaning Chinese government that is averse to putting its own at a distinct disadvantage.
In addition to keen business strategies, Renault and its partners will need a strong public relations effort to stand out from the crowd. At some point, all sales efforts come down to consumers making a buying decision. To create enough positive buying decisions to reach their goals, Renault must build a foundation that connects with the market and engenders a positive reputation.
From there, they must build on that mythos while simultaneously giving customers real and perceived reasons to choose their brand over others. It sounds simple, but in this crowded a market, it will not be easy. Appealing to the latest tech and consumer buying trends is a good start … but will it be enough?