According to foreign media reports, Volkswagen is looking for partners to jointly develop an electric car with a price of less than 20,000 euros (£17,500), and Renault is one of the potential partners. Renault and Volkswagen, both major players in the European car market, are looking to expand their electric vehicle offerings. Unfortunately, there is currently a lack of more "affordable" options, with price being one of the biggest barriers to entry.
According to foreign media reports, Volkswagen is planning to design a zero-emission entry-level model. This new car will be launched in Europe and will cost less than 20,000 euros (17,500 pounds). However, the company appears to be looking for partners to speed up research and development and fend off competition from Chinese rivals.
It is precisely because of the competition from Chinese rivals that prompts traditional European car manufacturers to increase their research and development efforts on electric vehicles, and cooperation may be the only feasible solution to take advantage of economies of scale to reduce costs.
Foreign media quoted people familiar with the matter as saying that Volkswagen is in "very early" negotiations with Renault to jointly develop a cheap electric model. One of the goals of both parties is to achieve an annual production of 200,000 to 250,000 cars. However, since the discussions are at a preliminary stage, they may not translate into an actual product.
A Renault spokesman said: "To compete with entry-level small electric cars, collaboration is necessary. We are having different discussions but nothing has been finalized yet."