This electric car leaves Tesla, Volkswagen to bite the dust in Europe

Renault SA delivered quite the shock in its sales figures this week to anyone who hadonly paid attention to Tesla Inc.’s stock chart. The French carmaker’sall-electric Zoe out-muscled the Model 3 asEurope’sbest-selling electric vehicle in the first half of the year.

By: Bloomberg
| Updated on: 24 Jul 2020, 17:06 PM
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A car carrier transporting Renault ZOE cars leaves the Flins plant of French carmaker Renault in Aubergenville, west of Paris. (REUTERS)
A car carrier transporting Renault ZOE cars leaves the Flins plant of French carmaker Renault in Aubergenville, west of Paris.

This little subcompact, which starts at 32,000 euros ($37,000), has come a long way from a day back in 2009 when Carlos Ghosn, then the head of Renault SA, first unveiled a concept versionat the Frankfurt motor show. It was touted as the ideal second car for familiesand the dawn of the manufacturer’s shift toward clean cars that wouldn’t warm the planet.

Also Read : Tesla planning compact EV after Cybertruck launch

The Zoe startedplodding along three years later. A couple of reboots and redesigns slowly raised its profile with consumers. Then, within the past year, something clicked. At almost 38,000 unit sales in Europe during the first six months of 2020, the four-door hatchback bested Tesla’s Model 3, Volkswagen AG’s electric Golf and Nissan Motor Co.’s Leaf.

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“It’s basically the same car that’s been around for a long time," albeit with some improvements in range, technology and design, said Felipe Munoz, an analyst at auto industry research firm Jato Dynamics.“So the latest success is a bit surprising."

Renault Zoe electric car continues to lead the electric vehicle segment in Germany.
Renault Zoe electric car continues to lead the electric vehicle segment in Germany.
Renault Zoe electric car continues to lead the electric vehicle segment in Germany.
Renault Zoe electric car continues to lead the electric vehicle segment in Germany.

It’s not quite as astonishingwhen consideringthe incentives now available to car buyers who are willing to go electric in France and Germany. The French government is offering as much as 7,000 euros toward the purchase of an electric car, and a cash-for-clunkers program can add another 5,000 euros in subsidies. Germany is offering incentives of as much as 9,000 euros per vehicle.

But what about the car itself? Renault’s car-sharing service offers up a basic older model fortest-drivingaround Paris to gauge comfort, maneuverability and range.

The motoris reactive—almost too much so when trying to squeeze into a tight parking spot—and providesmore than enough pick-up for city driving, even when careening around the city’s notorious Arc de Triomphe roundabout. The large touch screen is loaded withtools that navigated throughsome busy neighborhoods in the French capital and mapped out charging stations. The interior styling felt outmoded with a drab black color scheme,classic lines and a manual dial for temperature control. Space isn’t an issue—it felt roomier than the exterior let on. While it would be a tight fit even for three small people in the back, it’s pretty comfortable up front for two. The seats can’t be adjusted for height and theshifter was a little clunky, but the ride was smooth.

When the Zoe was rebooted last year, reviewers found it to be similar to the outgoing version, albeit packingmore range andpower, better braking and a cosmetically improved interior. Speeding up and down a wide Parisian avenue, even the older model responded well to acceleration and sudden braking when a taxi abruptly cut in front of the car.

While the Covid-19 pandemic did for a time reduce traffic in the world’s densest cities, street congestion is building back up again. The Zoe works well in urban centers because of its narrow, boxy shape and maneuverability.

The Zoe’s almost 50% jump in first-half European sales was the only bright spot in Renault’s otherwise-gloomy numbers. The carmaker, which is slashing costs, obtained a 5 billion-euro state-backed credit facility to make it through the coronavirus pandemic.

Competition has now arrived, with VW’s long-awaited ID.3 starting sales this week at about 38,000 euros.And PSA Group is promotingtwo new electric models, the Peugeot 208 and the Opel Corsa. “The ID.3 will be better from a technological point of view, closer to the Model 3," said Bloomberg Intelligenceauto analyst Michael Dean, predicting that the Zoe could fall behind.

Renault is more upbeat and feeling some degree of justification so many years after the car first hit the market.

“Our electric offensive is working very well," said Denis le Vot, Renault’s head of sales and marketing, pointing to the new electric version of the Twingo city car coming on the market and plans for hybrid versions of existing larger models. “Renault’s lineup still holds lots of surprises for the second part of the year."

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©2020 Bloomberg L.P.

First Published Date: 24 Jul 2020, 17:06 PM IST
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