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Groupe Renault has surprisingly decided to cancel the IPO of its Ampere electric unit, but has confirmed its strategy aimed at development and software. As recently as November 15th, the transalpine company presented the Ampere project in detail during the Capital Market Day, in view of a possible debut on the stock exchange of its new “pure EV player”, a dress rehearsal of a European Tesla. The program spoke of the first half of 2024. «As long as market conditions are favourable», they warned from Boulogne-Billancourt.
Something, in fact, slowed down the momentum. The market estimates demand for electric cars (EVs) to be declining or stagnant, after growth in 2023. Economic uncertainty has begun to curb purchases, as consumers are not convinced that electric vehicles meet their needs in terms of safety, range and, crucially, price. Even the collapse in the residual value of used electric cars, following the price war started by Tesla, and the idea that the purchase can be postponed while waiting for progress on the technological front, batteries for example, is discouraging the large public. Meanwhile, the enthusiasts (the early adopters) have already bought their EV, how many will follow them? Some commentators have spoken of the “valley of death”, referring to a period between 2024 and 2026-7: low residual values, high supply and low demand.
It is no coincidence that the first countermeasures have arrived in recent months. Several manufacturers have adjusted their workforce numbers downwards, from the Volkswagen Group to Ford, from Stellantis to Polestar (which has just announced a cut of 450 positions, equal to 15% of its staff). Less than a week ago, Tesla estimated a “significantly lower” growth rate in 2024, news that sent the stock plummeting by 12 percent.
So even the financial programs of Ampere, created to “democratize the electric vehicle in Europe” faster than its competitors, suffer a halt. It is not an isolated case: in 2023 the volume of IPOs in the world fell by 8%, with a drop in collections of 33% on an annual basis.
The French group, in a note, said that the decision takes into account “current market conditions”. However, “the entire Ampere team is fully committed to executing his strategy and building his track record.” The financial objectives include a turnover of over 10 billion euros by 2025, the achievement of a balanced budget in 2025, a turnover of 25 billion euros in 2031 and an operating margin of at least 10% starting from 2030. Ampere, which began operating separately from its parent company on November 1, is expected to have sales of around 2.8 billion euros this year, according to Renault. It aims to sell 300 thousand vehicles in 2025, compared to 45 thousand in 2023. The sales volume bar has been set at 1 million EVs in 2031.