PARIS (Reuters) - Renault (EPA:RENA)'s CEO Luca De Meo expressed doubts over the timeline for transitioning to electric vehicles in Europe, adding the carmaker has to bring down costs if it wants to deliver on its EV goals, in comments to business daily Les Echos published on Monday.
WHY IT'S IMPORTANT
The transition to electric vehicles plays a crucial role in reducing global carbon emissions, and the pace at which this shift occurs will reshape automotive industry and the environment.
Recent EU elections, coming at a time of weak electric vehicle demand, saw more and more calls to scrap the EU's 2035 ban on sales of diesel and petrol cars, which is due to be reviewed in 2026.
KEY QUOTE(S)
"We need a little more flexibility in the schedule," De Meo, who also chairs European car lobby group ACEA, said, but added: "However, it would be a serious strategic error to purely and simply abandon the objective because of the current market slowdown."
Asked about Renault's ambitions to shift 100% of its European car production to electric vehicles in the context of a weak domestic market, De Meo said:
"The truth is we are not yet on the right trajectory to achieve 100% electric cars by 2035. That's the truth. If customers don't follow us, we're all responsible. We need to cut costs."
CONTEXT
The automotive sector has experienced various challenges, such as regulatory uncertainty and competition from China adding to a cost-of-living crisis in home markets, impacting the transition to electric vehicles.
Global EV sales rose by 35% in 2023 but fell in 2024. In June, however, new car sales in the European Union rose 4.3% in June to their highest since July 2019, while registrations of battery electric cars fell marginally.