The Renault boss has promised a base price for the R5 under €30,000. An entry ticket that may seem high compared to the competition.
Shortly after his arrival at the head of the Renault group in mid-2020, Luca de Meo made an enticing promise: “a range of iconic, profitable electric vehicles, at an entry price of less than 20,000 euros, produced in France”.
A promise that will be partly kept. A few months later, the general manager formalized the revival of the R5, then that of the 4L. These modern versions will be 100% electric and produced in France. But the objective of €20,000 was lost on the way!
Moreover, since his first announcement, Luca de Meo has been more discreet about the starting price targets for the R5, which will be the less expensive model of the two. The modern 4L will indeed be positioned above, taking on the appearance of a small SUV, while the R5 will be a classic city car shorter than a Clio.
Discretion that is easy to understand: since taking office, the automotive industry has been shaken up by the consequences of Covid and then the war in Ukraine. The health and geopolitical context has thus caused production costs to soar, with in particular a surge in the prices of materials, energy, transport, etc.
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The situation is improving a little, which has also allowed Renault to start deflating the price of certain models, such as the Clio and the Arkana. But not yet those of electric models, which are doubly penalized. The increase in materials, this impacts the bodywork and the battery!
More affordable than its rivals… but which ones?
We then thought that Renault’s objective was to have an R5 which starts at €25,000 instead. This has clearly become the symbolic bar on the market for versatile electric city cars, since Volkswagen has made this promise for its ambitious ID.2, launched in 2025. Citroën has also promised an electric C3 at less than €25,000 for 2024.
But an interview with Fabrice Cambolive, director of the Renault brand, generates doubt. Our German colleagues fromAutogazette ask him if the R5 will cost less than €30,000. What Fabrice Cambolive answers: “we are working hard to offer the R5 for less than €30,000”. This is therefore an intriguing indication. Should we wait for an R5 whose base price is ultimately closer to €30,000 than €25,000?
During an official presentation of the CMF-BEV platform, the basis of the R5, the manufacturer had nevertheless promised a car cheaper than its competitors. But of course, it all depends on the target competition. Is Renault based on the current offer, with for example a Peugeot e-208 which starts at 34,800 € with us, or the one to come? Obviously, it leans towards the first option!
The reference competition will also surely be chosen for equivalent services. But we do not yet know the benefits of the R5, which could have a range of around 330 km in the starting version, when Citroën is aiming for 300 km for the ë-C3. It will also be necessary to compare the endowment, while Citroën and Fiat will tend towards more essential Dacia-style models.
The important thing is the rental offer
The R5 seems more “generalist”, precisely to make way for the Dacia Spring, which will be improved in 2024, and whose price for the high version is €22,300. There is therefore a group logic to follow in the placement of attack prices. Another element that weighs on the price of the R5: it will be made in France, a patriotic choice which leads to higher labor costs.
Renault’s objective is first to have an R5 cheaper than the Zoé, which currently starts at €35,100. By being under €30,000, it will therefore already be €5,000 less. Above all, as for the Megane, the brand will essentially bet on an aggressive rent, and this is where Renault intends to align well with the competition.
It relies on a good residual value to lower the rent, with certainly the objective of being at 100 € per month at the entry level. A way to forget a higher entry ticket than some competitors. Hoping for Renault that customers are not limited to comparing cash attack prices. A starting price that is too high can be risky.
The box of the Spring still shows that buyers of a small electric are very sensitive to the price, the Romanian selling much better than a more comfortable and safer Twingo. The R5 will however have an important asset: its favorite design. And another example from the market proves that this can drive up prices, the electric Fiat 500, which is selling very well even though it starts at €30,400 with 190 km of range! But Fiat is also clever by offering aggressive LLDs!
