EU: Renault's low-cost hybrid technology helps the brand find unexpected success

RahulNagaraj · 16th October 2024, 11:19

The global automotive market is currently in a tough spot. Multiple automakers have had to revisit their business targets and reduce their annual estimates amidst the changing conditions.

However, French carmaker Renault seems to be bucking the trend & managing to gain ground, especially in Europe's fastest-growing hybrid car market. Luca de Meo, CEO of Renault, mentioned how the brand's bet on a low-cost gearbox technology has allowed them to stick to their business targets and even improve sales, especially in the mass-market segment.

As per preliminary reports, Renault's hybrid car sales in the first eight months of 2024 have increased by a massive 55% from last year. This is mainly due to models like the Clio and Captur. Reports also state that in the first half of 2024, Renault's sales increase reached 60%, making them Europe's second-biggest brand in the segment, behind Toyota. A research note stated, "Renault seems to be doing very, very well. We think the company is simply more versatile and agile than its peers."

The primary reason for Renault's success is said to be the CEO's decision to invest in its low-cost hybrid transmission system, which it calls 'E-Tech'. Renault is said to have mastered the technology over the decades. Using its century-old expertise in gearbox manufacturing, the carmaker developed a simplified 'dog clutch' system. This tech, which connects & disconnects gears without the need for synchronisers, forms the basis of Renault's E-Tech.

The low-cost transmission system requires fewer components, making it lighter and more cost-effective. The tech can be implemented across Renault's model range, giving them a competitive advantage.

Antoine Giraud, Analyst at S&P Global, stated, "Renault is going to keep this advantage for several years." The hybrid tech also helps Renault comply with EU regulations. The company's E-Tech hybrid cars are said to emit as little as 95 grams of CO2 per kilometre, outperforming competitors like Volkswagen & Ford.

Source: Reuters

Link to Team-BHP news

ramsudharsan75 · 16th October 2024, 11:56

It would be nice to see low-cost hybrid tech penetrate the Indian market as well.

darkchild82 · 16th October 2024, 15:59

Renault has the solutions and yet, where is all this for their Indian offerings? A country that suffers from high petrol costs and obsession with mileage.

NiInJa · 16th October 2024, 18:57

This is an interesting technology that one of the engineers at Renault came up with. Using knowledge of Formula 1 powertrains, he built the hybrid powertrain model using Legos which became a full blown tech programme resulting into E-Tech Hybrid technology

Renault is doing well in Europe for sure, I see a lot of Renault cars on the road compared to other manufacturers.

16th October 2024, 11:19	#1
RahulNagaraj Senior - BHPian Join Date: Mar 2021 Location: Bangalore Posts: 2,569 Thanked: 24,399 Times	EU: Renault's low-cost hybrid technology helps the brand find unexpected success The global automotive market is currently in a tough spot. Multiple automakers have had to revisit their business targets and reduce their annual estimates amidst the changing conditions. However, French carmaker Renault seems to be bucking the trend & managing to gain ground, especially in Europe's fastest-growing hybrid car market. Luca de Meo, CEO of Renault, mentioned how the brand's bet on a low-cost gearbox technology has allowed them to stick to their business targets and even improve sales, especially in the mass-market segment. As per preliminary reports, Renault's hybrid car sales in the first eight months of 2024 have increased by a massive 55% from last year. This is mainly due to models like the Clio and Captur. Reports also state that in the first half of 2024, Renault's sales increase reached 60%, making them Europe's second-biggest brand in the segment, behind Toyota. A research note stated, "Renault seems to be doing very, very well. We think the company is simply more versatile and agile than its peers." The primary reason for Renault's success is said to be the CEO's decision to invest in its low-cost hybrid transmission system, which it calls 'E-Tech'. Renault is said to have mastered the technology over the decades. Using its century-old expertise in gearbox manufacturing, the carmaker developed a simplified 'dog clutch' system. This tech, which connects & disconnects gears without the need for synchronisers, forms the basis of Renault's E-Tech. The low-cost transmission system requires fewer components, making it lighter and more cost-effective. The tech can be implemented across Renault's model range, giving them a competitive advantage. Antoine Giraud, Analyst at S&P Global, stated, "Renault is going to keep this advantage for several years." The hybrid tech also helps Renault comply with EU regulations. The company's E-Tech hybrid cars are said to emit as little as 95 grams of CO2 per kilometre, outperforming competitors like Volkswagen & Ford. Source: Reuters Link to Team-BHP news
	(10) Thanks

16th October 2024, 11:56	#2
ramsudharsan75 Newbie Join Date: Sep 2024 Location: Bengaluru Posts: 2 Thanked: 7 Times	Re: EU: Renault's low-cost hybrid technology helps the brand find unexpected success It would be nice to see low-cost hybrid tech penetrate the Indian market as well.
	(6) Thanks

16th October 2024, 15:59	#3
darkchild82 BHPian Join Date: May 2009 Location: Bangalore Posts: 33 Thanked: 91 Times	Re: EU: Renault's low-cost hybrid technology helps the brand find unexpected success Renault has the solutions and yet, where is all this for their Indian offerings? A country that suffers from high petrol costs and obsession with mileage.
	(1) Thanks

16th October 2024, 18:57	#4
NiInJa Senior - BHPian Join Date: Sep 2012 Location: Pune Posts: 1,138 Thanked: 4,244 Times	Re: EU: Renault's low-cost hybrid technology helps the brand find unexpected success This is an interesting technology that one of the engineers at Renault came up with. Using knowledge of Formula 1 powertrains, he built the hybrid powertrain model using Legos which became a full blown tech programme resulting into E-Tech Hybrid technology Renault is doing well in Europe for sure, I see a lot of Renault cars on the road compared to other manufacturers.
	(3) Thanks