Renault CEO Expresses Doubts on EV Transition Timeline in Europe

Renault's CEO, Luca De Meo, has raised concerns regarding the timeline for the transition to electric vehicles (EVs) in Europe, emphasizing the need for cost reductions to meet the company's EV goals. In an interview with Les Echos, De Meo highlighted the critical role of this transition in reducing global carbon emissions, noting that the pace of change will significantly impact both the automotive industry and the environment. His comments come in the wake of recent EU elections, where calls to reconsider the 2035 ban on diesel and petrol car sales have intensified due to weak EV demand. De Meo, who also leads the European car lobby group ACEA, stated that while flexibility in the transition schedule is necessary, abandoning the objective of moving towards electric vehicles would be a strategic mistake. He acknowledged the current market slowdown but insisted that the goal of achieving 100% electric car production in Europe by 2035 is not on track. He stressed the collective responsibility of the industry to engage customers and the urgent need to cut costs to facilitate this transition. The automotive sector is grappling with various challenges, including regulatory uncertainties and increased competition from China, compounded by a cost-of-living crisis in key markets. Although global EV sales surged by 35% in 2023, they have since declined in 2024. Notably, while new car sales in the EU rose by 4.3% in June, registrations of battery electric vehicles saw a slight decrease, indicating ongoing hurdles in the shift towards electrification.