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Renault Says Its Electric Vehicle Sales Are Surging As Europeans Let Go Of 'Range Anxiety'

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Renault Says Its Electric Vehicle Sales Are Surging As Europeans Let Go Of 'Range Anxiety'

Sales of Renault SA’s (OTC: RNLSY) five-door electric car Zoe have increased more than twofold in 2020 in the United Kingdom, Reuters reported Monday.

What Happened: The automaker said that its electric vehicles had outsold the diesel models in France this year. EV sales accounted for 19%, while diesel sales made up for 18%.

“At the beginning, we were facing some psychological barrier linked to autonomy: oh la la, am I going to have a breakdown, I won’t have any more electricity,” Renault’s head of sales Denis le Vot told Reuters.

“Range anxiety has gone away and once you explain how easy it is to live day to day with an electric vehicle, that has a big impact on sales,” said Steve Tomlin, General Manager for a Renault dealership in Reading, United Kingdom.

Renault says it has trained 30,000 staff at dealerships in Europe on EV technology. 

Why It Matters: The French carmaker told Reuters it is leveraging government subsidies, offering discounts, and installing free charging stations for customers.

Sales of Zoe are dominating the European landscape, where EVs accounted for 18% of total auto sales in July. Zoe was the bestselling EV in Europe in July with 146% year-on-year growth, with 9280 units sold in the month.

Tesla Inc (NASDAQ: TSLA) lost ground to Renault on the continent as its sales fell 76% to 1,050 in July.

Other best selling models included Peugeot S.A.’s (OTC: PUGOY) 208 and Porsche Automobile Holding SE’s (OTC: POAHY) Taycan. 

Japan’s Nidec Corporation (OTC: NJDCY) is planning an almost $2 billion plant in Siberia, where it would build EV motors to quench the demand arising out of Europe, according to Nikkei Asia.

LG Chem, which supplies batteries to both Renault and Tesla, is also looking for a new battery factory in Europe, according to its CEO Hak Cheol Shin.

Price Action: Renault’s OTC shares closed 0.04% higher at $4.9 on Friday.

 

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