What do we know about the Renault EV IPO?
French car manufacturer Renault is exploring a possible IPO for its electric vehicle unit in the second half of 2023. The move comes as firms across the industry attempt to benefit from rising EV sales and investor interest.
Take a look at other upcoming IPOs.
Renault has not yet made a concrete decision as to how the business will be split – they could just release separate figures – but the announcement has already started to create a buzz. The EV market could see a raft of competition enter the fray, as Ford also announced recently it would be separating its electric and non-electric businesses.
The plan for Renault’s EV IPO would need approval from its alliance partner Nissan. The company has said it would also consider lowering its stake in Nissan – which is currently 43% - as part of the plan to separate the EV business. The partnership between Nissan and Renault has existed for 23 years, so the decision won’t be made lightly.
What does Renault EV do?
Renault’s EV business currently operates as part of the Renault Group. It’s primarily made up of the E-TECH range, which is Renault’s electric vehicle models and hybrid engines. But Renault Group has announced it’s looking at supporting a dedicated EV entity in France, with the aim of being 100% electric in Europe by 2030.
Currently, Renault’s EV offering is:
- Zoe E-TECH electric
- Megane E-TECH electric
- Clio hybrid
- Capture hybrid
- Arkana hybrid
Is Renault’s EV business profitable?
Currently, Renault does not release separate figures for its EV business. The Group as a whole saw
revenues fall 2.7% to €9.75bn in the first three months of 2022 – this came amid the ongoing shortage of semiconductors and falling car sales as the company pulled out of Russia.
We do know that the E-TECH range currently accounts for 30% of Renault’s passenger car sales in Europe in 2021 (vs. 17% in 2020). The group's order backlog – as of Q4 2021 – in Europe has doubled compared with 2020, bolstered by the attractiveness of the Renault E-TECH range – particularly the Dacia Sandero and Dacia Spring 100% electric models.
Who are Renault’s EV competitors?
Renault’s EV division would be playing catch up to well-established players on the market, such as Tesla and Volkswagen Group.
As of 2021, Tesla dominates the market, with a 13.84% share of electric vehicle sales – selling close to 936,200 units for the year. VW Group comes in second, with 11.28% of the market, selling approximately 452,900 units in 2021. In comparison, Renault sold nearly 115,000 electric cars for the year.
Volkswagen is another automotive company restructuring its business, as it announced the intention to float its Porsche division.
Learn more about the Porsche IPO.
How to trade Renault’s EV stock
When it lists, you’ll be able to trade Renault EV shares in the same way you would any other company on the stock market.
In the meantime, you can trade thousands of global shares with FOREX.com in just four steps:
- Open an account, or log in if you’re already a customer
- Search for the company you want to trade in our award-winning platform
- Choose your position and size, and your stop and limit levels
- Place the trade
Alternatively, you can practise trading with a free demo account ahead of Renault’s EV IPO.