Renault goes on China hiring spree to bolster EV push at home

Renault SA is trying to strengthen its electric-vehicle (EV) business at a time of flagging demand by building up its footprint in a country where it does not even sell cars – China.

The French carmaker is turning to one of the few markets where battery-powered cars are selling well to access new technology and learn how to make EVs faster. The company has hired some 200 people in Shanghai, mainly hardware engineers working on the development of a sub-€20,000 (US$21,106) electric Twingo, and also plans to add software engineers, according to people familiar with the situation.

“We are there to learn and we will integrate this knowledge into our own teams,” in France, Francois Provost, Renault’s chief procurement, partnerships and public affairs officer, said in an interview.

Expanding in China is a sensitive subject in France, where some unions are pushing back against management efforts to raise efficiencies via measures including limiting remote work to 2.5 days per week. Renault’s decision to develop much of its new Twingo in China has been criticised internally, and the manufacturer also employs about 3,000 engineers in India.

Renault confirmed its full-year guidance last month, making it an outlier in the industry. Peers including Stellantis NV, Volkswagen AG and BMW AG have issued profit warnings in recent weeks, citing slower EV demand, supplier issues and a slump in China sales. VW and Stellantis, which have been dogged by delays in the introduction of new EVs due to software problems, have since announced plans to cut jobs and close factories.

Renault is betting on its electric €25,000 R5 city car to bolster sales in the near term, and in 2025 plans to introduce models including an electric version of the 1960s-era 4L economy car and the sub-€35,000 R4. By early 2026, all of the group’s EVs, including older models, will be available with cheaper lithium iron phosphate, or LFP, batteries, Provost said.