Renault’s plans to spin off its electric vehicle (EV) wing through an initial public offering (IPO) are reportedly being tarnished by wider economic issues.
France-based Renault laid out plans last year to spin off its EV wing, known as Ampere, midway through 2023, but these plan were then pushed back into 2024.
However, the carmaker is unlikely to press ahead with plans to list shares in Ampere if the firm’s final valuation ducks below €7 billion (£6.08 billion), sources cited by Reuters said.
Faltering demand, increased competition from Chinese manufacturers in Europe and market volatility have hit the plans, the sources explained.
Renault had been targeting a valuation in the region of €8-€10 billion for the EV wing, chief executive Luca de Meo said previously.
Growing uncertainty across the European EV sector, highlighted by scrapped listing plans by German gearbox supplier Renk and French firm Planisware, have cast doubt over whether Renault can now achieve such a valuation.