Renault sets out targets for EV unit Ampere, says won’t sell it cheap

French car maker Renault said on Wednesday its electric vehicles unit Ampere, which it plans to list on the market next year, forecast 10 billion euros ($10.8 billion) in revenues in 2025, more than doubling to 25 billion euros in 2031.

The group set out financial targets for the unit, including an expected break-even in 2025 and an operating margin of at least 10% from 2030, ahead of an investor day where it hopes to drum up support for an initial public offering slated for spring 2024.

The plan has been complicated by slower demand for EVs, choppy markets and increased Chinese competition, with sources close to the deal telling Reuters last month CEO Luca de Meo’s hoped-for valuation of 8 to 10 billion euros looked over-ambitious.

Finance chief Thierry Pieton told reporters ahead of the presentation Renault would not sell off Ampere cheap and had ample cash flow to keep financing it should it not get the valuation it wanted for an IPO.

“We are not going to give it away,” he said.

Asked if Renault could decide to distribute Ampere shares to existing Renault shareholders instead of proceeding with an IPO, he said: “Renault is always open to other options for Ampere, but the IPO is the preferred option.” Sources close to the matter told Reuters last month the company was unlikely to go ahead with the IPO if the overall valuation for Ampere fell below 7 billion euros.

Pieton said Renault aimed to sell EVs at the same price as its combustion engine cars earlier than rivals, with smaller EV models reaching price parity in the next two years and bigger ones by 2027-28.

“We want to democratise EVs in Europe. We will reduce our costs to lower our prices, while improving our margins at the same time.”