Ghosn Targets Cheaper Electric Cars for China to Boost Sales
Carlos Ghosn aims to accelerate Renault-Nissan’s electric vehicle sales in China by focusing on more affordable models to compete with local low-cost offerings.
Carlos Ghosn, CEO of the Renault-Nissan Alliance, has set his sights on ramping up electric vehicle sales in China by introducing more affordable models, responding to slow uptake and strong price sensitivity in the world’s largest car market.
Nissan’s Leaf, one of the world’s best-known electric cars, has struggled to gain traction in China, with monthly sales reaching only a few hundred units. Ghosn acknowledged that high prices and consumer preference for larger SUVs have hampered demand, even as the Chinese government pushes for five million electric and hybrid vehicles on the road by 2020. He pointed out that many Chinese buyers opt for very cheap electric cars, underlining the need for a new approach from international manufacturers.
Affordable models in development
Ghosn confirmed that Renault-Nissan is working with its local partner Dongfeng on an electric vehicle based on the Renault Fluence, to be built at the new Wuhan plant. However, he has indicated that this model may not be affordable enough to shift the market. The Alliance’s goal is to develop a car that finds the right balance between price and acceptable performance, a challenge that remains unresolved. Ghosn described the search for this compromise as ongoing, with the company betting on further development of very affordable electric cars for China.
Price versus technology: the key challenge
The main obstacle for foreign brands is the cost of technology relative to what the Chinese market will bear. Ghosn has stated that while it’s possible to bring down prices by reducing performance, the real task is to find the lowest price point that still delivers a product buyers will accept. This tension between affordability and capability is shaping the Alliance’s Chinese strategy, as local competitors already offer basic electric vehicles at much lower prices.
Outlook for Renault-Nissan in China
Ghosn’s strategy signals a shift from focusing on global flagship EVs like the Leaf to developing market-specific models that can compete directly with low-cost Chinese offerings. The outcome will depend on whether Renault-Nissan can deliver a product that meets both the price and quality demands of Chinese buyers, in a segment where margins are tight and competition is intensifying.
