Renault chief executive Luca de Meo has warned against the automotive industry rushing to introduce all-electric lineups, noting it could have undesired consequences in the environment.
While recently speaking at The Financial Times’ Future of the Car Summit in London, de Meo said that the French car manufacturer is committed to electric vehicles but noted EVs have yet to reach price parity with ICE vehicles and may not do so for quite some time given rising raw material costs.
“The first thing I want to say is that Renault is obviously very committed to EVs. We started very early here, and we continue to believe that EV and maybe hydrogen can be a good solution for some applications,” he said. “But if you look at the data, it is apparent that combustion-engine sales – including hybrids – have yet to reach their peak. There are challenges, across societal, financial and ecological perspectives that should be considered.”
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De Meo says that while electric vehicles suit many car buyers for 85 per cent of their typical usage, they’re not so useful for those “two or three longer journeys a year.” Renault’s boss added that the lifetime CO2 emissions of EVs need to be closely considered, Autocar notes.
“Then there is the lifetime CO2 – the cradle-to-grave figure – for a car, the answer to which is not so obvious. Some alternative fuels, or hybrids, can be cleaner than EVs on these measurements,” he added. “And then there is the financial accessibility of EVs. We see price parity around 2025, but now that might have moved because of raw material inflation.”
In addition, de Meo believes that strict EV mandates coming into force in markets around the world could damage the environment by cutting off investments to improving existing combustion engines and fuel technologies.
While Renault does see a future for ICE and hybrid vehicles over the coming years, it is investing heavily in electric vehicles and last September, unveiled the Megane E-Tech, an all-electric compact crossover based on the same platform as the Nissan Ariya. The vehicle is offered with 40 kWh and 60 kWh battery packs and can be topped up with 248 miles (399 km) of range in 30 minutes through a 130 kW fast-charger.