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French automaker Renault SA (OTCPK:RNSDF) laid out ambitious goals for its new combined electric vehicle and software business this week. The automaker expects the sparkling-new Ampere business to democratize the market for battery-powered cars in Europe by making them as affordable as gas-powered cars or diesel-powered models.
Ampere envisions bringing a software-driven car to the market by 2026. Significant costs savings are anticipated by using a software package that can be applied to different electric car models and combines scattered processors in a central architecture that remains constantly connected to computer networks. Ampere also plans a small car selling for under 20K euros that could appeal to the mass market.
Renault (OTCPK:RNSDF) is reportedly open to selling shares in Ampere through an initial public offering if conditions are right, but anticipates that it will retain a majority stake. The company predicts Ampere will have revenue of €10B euros annually with four vehicles, and grow to annual revenue of €25B euros after its lineup expands to seven vehicles. The model lineup includes the Megane E-Tech, the upcoming the Scenic E-Tech, the upcoming Renault 4, and the upcoming Renault 5. UBS fprecast that Ampere could achieve a valuation of €8B euros to €10B euros if an IPO happens on the first half of 2024 as expected.
