Renault Boss Expresses Concern Over EV Price Cuts

Renault Group boss Luca de Meo has warned automakers about the consequences that may come with lowering their EV prices, reportsAutocar.

It all started earlier this year whenTesla dramatically reduced pricing across the board. In the USA, this meant the entry-levelModel Y- already a popular vehicle - received a $13,000 discount, making it an even more appealing buy.

Those in the market for a new Tesla may have rejoiced at the news, but it's caused a problem for other automakers that are just starting in the electric vehicle sphere. VinFast, for example, announced that itplans to offer promotionsto remain competitive. Ford, on the other hand,has also decreased the priceof the Mustang Mach-E in response to Tesla's price cuts.

While this may seem sensible, de Meo worries reduced pricing could eat into the profits of all EV makers.

This isn't just a case of a CEO being greedy. He believes this could have long-term effects on the industry. "I think that a battle on pricing [for] electric cars right now when we're starting operations isn't the best thing that could happen to the industry. Because we have to invest, we have to generate a margin for electric cars. Otherwise, this will not become [a] very healthy business for the industry."

These comments reflect the thinking of Volkswagen's Oliver Blume, who recently said the German automakerwould not engage in a price war. "We have a clear pricing strategy and are focusing on reliability. We trust in the strength of our products and brands," said the Group CEO.

Even though they're gaining momentum, EVs are still expensive to develop and build.