Plans to build a new small EV engine in France using Chinese supplied parts are being pursued by Renault to cut costs and protect margins.
Renault will build a new small electric vehicle engine in France using components supplied by China’s Shanghai e-drive, the carmaker confirmed, as it seeks to cut costs and protect margins in a weak European market.
A company spokesperson said the engine will be assembled domestically despite relying on Chinese supplied parts, reflecting Renault’s efforts to remain competitive as price pressure intensifies across the electric vehicle sector. The move underlines the growing role of Chinese suppliers in Europe’s EV supply chains.
Renault already imports small electric engines produced by Shanghai e-drive for its new Twingo model. The vehicle was developed in under two years, a process the company has previously attributed to close collaboration with the Chinese supplier and its engineering teams.
The confirmation follows a Reuters report in November 2025 that Renault had ended a project with French automotive supplier Valeo to develop a more powerful electric motor without rare earths. At the time, the carmaker was reported to be considering a lower cost Chinese alternative.
French automotive publication L’Argus was the first to report confirmation of plans for the new small engine.
According to the CGT union, Renault will assemble the entry level engine at its Cleon plant in northern France. Management briefed staff last week on plans to install a new production line from early 2027, with annual capacity expected to reach up to 120,000 engines.
