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Renault works with Chinese suppliers to develop affordable electric vehicles

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Renault confirms using Chinese suppliers for EV components to cut costs and speed up development, a trend seen across Western automakers in the competitive EV market.
Michael Powers, Editor

Renault has officially confirmed it will continue working with Chinese suppliers to develop affordable electric vehicles. For the new Twingo Electric, the company is sourcing electric motor components from Shanghai e-Drive, even though final assembly of the motors and vehicles will remain in France.

The reason for this decision comes down to cost. Mass-market models like the Twingo need competitive pricing to ensure sufficient sales volumes and profitability. Chinese manufacturers have an advantage due to their production scale, lower costs, and steady access to raw materials, making them nearly indispensable in EV supply chains.

Renault notes this strategy is not unique. Most Western automakers already rely heavily on Chinese companies, especially in the battery sector dominated by CATL and BYD. Chinese suppliers are increasingly involved not just with batteries but also with key components of powertrains and electronics.

This trend affects the entire market. Audi is collaborating with SAIC on software, while Ford, according to recent reports, is discussing a partnership with Geely to access energy management and autonomous driving technologies. Against this backdrop, Renault's move looks like a logical step to speed up development and keep prices down for affordable EVs, even as China's influence on the European auto industry grows more pronounced.