Luca de Meo, CEO of Renault, has announced that the cost of electric small cars is expected to decrease significantly, potentially making them cheaper than their combustion engine counterparts.

This assertion was made in a recent interview where De Meo highlighted the automotive group's electric vehicle division, Ampere, which aims to achieve its first profit this year.

He confirmed that they are committed to reaching the breakeven point in 2023 and expressed optimism about meeting this goal.

The new electric version of the Twingo is anticipated to be priced lower than the current hybrid Clio model, marking a significant milestone in cost reduction initiatives.

De Meo indicated that small cars will be the first segment to see price parity between electric vehicles and combustion engines.

He stated that in certain sectors, such as urban small cars and delivery vehicles, upcoming models will soon be cheaper than comparable combustion engine vehicles.

This affordability is attributed to the use of smaller batteries that suffice for urban usage, which, in turn, reduce overall vehicle costs compared to hybrids compliant with the European Euro-7 regulations.

In the context of European Union regulations, De Meo criticized the existing CO₂ legislation, which effectively enforces a ban on combustion engine vehicles by 2035. He advocated for a fundamental reform that encompasses the total lifecycle emissions of vehicles, emphasizing that the current regulatory focus on emissions from 'tank to wheel' represents only a partial view.

In his assessment, driving a combustion vehicle contributes approximately 80% of its total emissions, whereas this figure stands at only 30% for electric vehicles.

De Meo argued for recognizing various technologies in the decarbonization efforts, warning that if current regulations remain unchanged, the European new car market could decline from 13 million vehicles annually to between 7 and 8 million by 2035.