Renault, Absent from China, Created a Chinese-Style Playbook

Author | Zhou Zhiyu

Less than a year into his tenure, Renault Group CEO Luca de Meo has completely overhauled the strategic landscape left by his predecessor. The mobility brand Mobilize has been scaled back, plans to spin off the electric vehicle division Ampere have been halted, and collaborations with Valeo on high-performance motors have been terminated, with Chinese suppliers now taking their place.

On March 10th, local time, this former procurement executive revealed his own strategy—futuREady. By 2030, launching 36 new models, maintaining an operating profit margin of 5%-7%, and achieving an annual free cash flow of no less than 1.5 billion euros. These figures are not surprising in themselves.

What’s interesting is the reference framework for this strategy.

De Meo stated a rarely directly expressed goal at a European automaker’s strategic presentation: “Our aim is to be on par with Chinese automakers in terms of innovation, cost efficiency, and development speed.” Targets include a two-year development cycle, a 40% reduction in pure electric platform costs, and 350 robots in factories—each KPI clearly aligned with specific benchmarks.

Renault has exited the Chinese passenger car market for years. Its 2025 global sales reached 2.236 million units, with revenue of 57.9 billion euros and an operating profit margin of 6.3%. While not a large volume, its approach is quite pure: China is not its market, but its methodology source and parts supplier. This makes futuREady an interesting case—how a European automaker can build an entire strategy based on “benchmarking China” without directly participating in the Chinese market.

An Underestimated Strategic Choice

During the Q&A session, a frequently asked question was posed to de Meo: Since Renault is not returning to the Chinese market, what role does China play in your plans?

De Meo was straightforward. He listed three points: continue developing models in China, including leveraging Geely’s GEA platform for overseas markets; procure parts from China to serve European production; and maintain collaborations with Chinese suppliers and ecosystems.

All three points point to the same logic—using China’s capabilities to serve non-Chinese markets.

This approach is rare among multinational automakers. Volkswagen still invests hundreds of millions of euros in China to catch up with local brands’ smart technology pace; Stellantis’ joint ventures in China are shrinking but not willing to fully exit. Renault chose a different path: stepping out of the Chinese battlefield, focusing resources on Europe, India, and Latin America.

De Meo’s strategic statement reveals a fundamental consideration: “We face no major uncertainties like those faced by Chinese or U.S. market players.” For a company with over 50 billion euros in annual revenue, not competing directly in the world’s two largest markets results in a cleaner balance sheet and more focused resource allocation.

But Renault is not entirely “de-Chinese-ized.” A few months ago, it terminated its collaboration with Valeo on high-performance motors and turned to Chinese suppliers instead. The Twingo E-Tech electric, which went from concept to mass production in 22 months, owes much of its speed to Chinese suppliers and Renault’s Shanghai R&D center ACDC.

This indicates that even a European automaker deliberately distancing itself from the Chinese market cannot completely escape China’s cost advantages. De Meo himself admits, “The components they provide make us more competitive.”

“Chinese Speed” in Europe

The most striking figures in futuREady are almost directly modeled after Chinese automaker capabilities.

Development cycle compressed to two years. De Meo cited the Twingo example: 22 months, completed in China. He then said the current challenge is to replicate this speed “at our technical center in France, using European suppliers.” The implication is clear—what China can do, Europe must also achieve.

Next is the pure electric platform. Renault announced the RGEV Medium 2.0 platform parameters: 800V architecture, integrated battery and vehicle design, 20% fewer parts, no rare-earth magnetic synchronous motors, and a 20% reduction in power electronics costs. The pure electric WLTP range can reach up to 750 km, with extended-range versions covering 1,400 km. The overall goal is to reduce electric vehicle costs by 40% compared to the current generation.

This set of targets is aligned with the efficiency accumulated by China’s EV supply chain in recent years. The platform is mainly developed in France, with the first mass-produced model using a jointly developed Android-based in-car system with Google—an approach similar to Chinese automakers’ “borrowing” of global top technology resources and supply chain integration.

Factory efficiency is also benchmarked against China. 350 humanoid robots in production lines, AI-driven quality inspection covering over 1,000 control points, digital twin of the industrial metaverse, halving factory downtime, reducing energy consumption by 25%, and lowering global production costs by 20%. The variable cost per vehicle could decrease by about 400 euros annually, initial investment costs for new projects down by 40%, and logistics costs by 30%.

However, contradictions are also evident. When asked whether Renault would follow Volkswagen’s example of large-scale layoffs, de Meo responded that it would not, emphasizing transparent communication with unions. He also promised that by 2030, the European manufacturing footprint would remain stable, with a 30% increase in French production compared to the previous cycle.

This reflects a structural tension between Chinese speed and European realities. De Meo himself recognizes how difficult this is. He said reducing development cycles from five years to two is a “paradigm shift.” When asked if they know how to do it, he replied, “Yes, we achieved it with Twingo—but that was in China. Whether we can do it in Europe is our ambition.”

Wall Street Journal sources reveal that, as a former procurement chief at Renault, de Meo often cites Chinese manufacturers as examples when talking to employees, illustrating the agility and efficiency Renault should strive for.

A New Growth Narrative

Technologically aligned with China, but aiming for growth outside China. futuREady’s growth strategy hinges on markets beyond Europe.

Renault aims for global sales exceeding 2 million units by 2030, with half coming from outside Europe. But in 2025, Renault’s sales outside Europe are only 620,000 units—almost doubling in four years, a steep growth rate.

India is the cornerstone of this narrative. Renault has been deeply rooted in India for 15 years, with a complete local value chain. De Meo positions India as a “global hub,” not only serving the local market but also as a manufacturing and export center for international markets. The Bridger concept car unveiled at the launch is a concrete example—a sub-4-meter B-segment SUV supporting fuel, hybrid, and electric versions, expected to debut in India by late 2027.

In a way, Renault is doing what Chinese automakers do in China: low-cost manufacturing bases combined with export platforms. Latin America and South Korea are two other pivots, with the combined market coverage roughly equivalent to Europe.

But this narrative has vulnerabilities. BYD aims for 1.3 million overseas sales in 2026, and Geely has set an export target of 640,000 units this year. Chinese automakers are accelerating their expansion into markets Renault targets—Latin America, Southeast Asia, the Middle East—placing significant pressure on Renault’s international growth.

Europe’s domestic defenses are also under threat. Renault’s goal in Europe is 100% electric sales, split evenly between pure electric and plug-in hybrid. This strategy is itself a response to carbon regulations.

When asked about Chinese automakers’ continued market share gains in Europe, de Meo said with a meaningful tone: “I don’t know what my peers are doing, but we will be just as competitive as our Chinese competitors.”

When? “Step by step. Starting now.”

futuREady is a sober strategy. It clearly identifies competitors, gaps, and where not to fight. But there is always a gap between awareness and execution. Its success ultimately depends on a fundamental question: can Europe’s industrial system, without breaking its social contract, achieve Chinese-like efficiency?

This is not just Renault’s challenge but the question that Europe’s entire automotive industry must answer in the next five years.

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