Renault’s chief executive is the latest big name in the auto industry to cast doubt on the transition to electric cars in the next decade, warning that sales are not on the “right trajectory.”
Labour is expected to bring forward a ban on new petrol and diesel car sales in Britain by five years (to 2030), while in Europe the proposed date for carmakers to switch to electric vehicles is 2035.
But Renault boss Luca De Meo has warned that customers are not ready to switch to battery-powered vehicles and called for “more flexibility in schedules”.
This comes after Ford recently said its own plans to become an EV-only brand from 2030 were “too ambitious” and Fiat confirmed it has scrapped plans to make its 500 city car electric-only because older drivers don’t want electric models.
Renault chief executive Luca De Meo (pictured) has said the 2035 deadline for reaching 100% electric new cars is unrealistic and called for “more flexibility” in the timetable for moving to electric vehicles.
Renault boss Luca De Meo has expressed doubts about the timetable for the transition to electric vehicles in Europe in an interview with the French financial daily. The echoesthis week.
He said the onus now falls on the automaker to cut costs if it wants to meet its EV targets.
While a change in the British government is expected to see Kier Starmer’s Labour Party accelerate a ban on sales of new petrol and diesel models by five years to 2030, the European deadline of 2035 is already in doubt.
The recent European elections, held at a time of weak demand for electric vehicles, have prompted growing calls to scrap the 2035 deadline, with it due to be reviewed in 2026.
Speaking to the French newspaper, the Renault boss said: “We need a bit more flexibility on the calendar.”
De Meo, who also chairs the European automotive lobby ACEA (European Automobile Manufacturers Association), is one of the most influential figures in the motor industry on the continent.
He has more than thirty years of experience in the automotive sector. He began his career at Renault in 1992 before holding positions at several brands including Toyota, Fiat and Volkswagen Group. He returned to Renault as CEO in 2020.
De Meo told a French newspaper: “The truth is that we are not yet on the right trajectory to achieve 100% electric cars by 2035. That’s the truth.”
While calling for more flexibility on the date set for banning the sale of new petrol and diesel cars in Europe, De Meo added that it would be a “serious strategic mistake to simply abandon the objective because of the current market slowdown.”
Asked about Renault’s ambitions to become an all-EV brand by 2035 amid a weak domestic market, De Meo said: “The truth is that we are not yet on the right trajectory to achieve 100 percent electric cars by 2035. That’s the truth.
“If customers don’t follow us, we are all responsible. We have to reduce costs.”
The automotive industry has faced several challenges in persuading motorists to buy electric vehicles today.
High prices, range anxiety and lack of charging infrastructure remain major concerns across all markets, as do favorable charging costs for those with off-street residential parking and access to a home charger versus those who rely on a more expensive public device network.
Declining costs of living, regulatory uncertainty and competition from China are also impacting the transition to electric vehicles.
As such, automakers have been making drastic changes to their schedules to phase out new models with combustion engines.
The head of Ford’s electric car division has said the brand’s plans to go all-electric in Europe from 2030 were “too ambitious”, while confirming the company will continue to offer hybrids.
Last week, Ford admitted it has backtracked on plans to sell only electric cars in Europe from the end of the decade.
In an interview with CoachFord Model E boss Marin Gjaja said “uncertainty” around EV demand and legislation has forced him to shelve a 2030 target of phasing out petrol and diesel models.
Marin Gjaja, chief operating officer of Ford’s Model E electric car division
He said 2030 was “too ambitious”, as the company confirmed. would continue to offer new hybrid cars in Europe beyond that date.
The Fiat boss also recently confirmed that… reintroduce a petrol version of its 500 city car due to a lack of demand for electric vehicles, especially among older drivers.
Chief executive Olivier Francois said the new “mild hybrid” Fiat 500 Ibrida will arrive in early 2026 due to “slower than expected adoption of electric vehicles in Europe.”
German car giant Mercedes-Benz announced this year that it will extend the production run of one of its best-selling combustion cars due to concerns about the adoption of electric vehicles.
The A-Class hatchback, which was due to be retired at the end of this year, will continue to be produced until 2026 as part of Mercedes’ more “flexible” strategy for the transition to electric vehicles.
CEO Ola Källenius has said the company will continue to produce combustion-engine cars based on existing platforms well into the next decade because price parity between electric and gasoline vehicles “is many years away.”
Fiat Chief Executive Olivier Francois said the carmaker would reintroduce a petrol version of its 500 city car due to a lack of demand for electric vehicles, particularly among older drivers.
Audi has cut back on electric model launches due to falling demand, while VW has also cut production due to a combination of parts shortages and lower-than-expected sales.
Other manufacturers are reluctant to move ahead with phasing out combustion engines.
Toyota President Akio Toyoda said in January that battery-powered electric vehicles will never dominate the auto market and account for no more than a third of global sales.
Toyoda said switching to electric vehicles is not the answer when 1 billion people around the world live without electricity: “We also supply vehicles to these regions, so a single electric vehicle option cannot provide transportation for everyone,” he said.
“No matter how much progress electric vehicles make, I think they will still only have a 30 percent market share.”
In May, Toyota, Mazda and Subaru pledged to introduce smaller gasoline engines for use with hybrid technology and to adopt green biofuels to reduce vehicle emissions.
Toyota, the world’s largest car seller, described the development as “an engine reborn.”
From left to right: Subaru CEO Atsushi Osaki, Toyota CEO Koji Sato and Mazda CEO Masahiro Moro confirm that the three auto companies have joined forces to develop new compact internal combustion engines in a bid to achieve carbon neutrality without relying solely on electric vehicles.
And Aston Martin chairman Lance Stroll has also said the British sports car firm will continue making gasoline-powered models until regulators force it to stop amid muted demand for electric vehicles.
“We will continue to make them (gasoline cars) as long as we are allowed to do so. There will always be demand, although it will be reduced,” he said in April.
But while many car brands are delaying their plans to switch to electric vehicles, Jaguar is not.
The British carmaker, now owned by India’s Tata, is ceasing production of all but one of its combustion-engine cars as it accelerates toward the company’s ambition to become an all-electric luxury brand from next year.
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