Renault Sees Fleets As Key To Driving Up Sales Of Its EVs

APR 12 2014 BY ERIC LOVEDAY 13

According to Business Car Manager, Renault expects to see significant growth in its electric vehicle sales in 2014.

Apparently, Renault Kangoo Z.E. is Best Suited to Delivering the Greens

Apparently, Renault Kangoo Z.E. is Best Suited to Delivering the Greens

Renault says that the general public is becoming more aware of EVs and, as such, expects sales to improve throughout the year.

However, it’s not just sales to the public where Renault expects to see growth.

As Business Car Manager reports:

“SMEs (small and medium enterprises) in particular are getting switched-on to the many benefits of taking the Renault EV route, according to Renault.”

Renault UK’s electric vehicle product manager Ben Fletcher says that businesses and consumers are attracted to the Renault way: selling the vehicle, but leasing the battery.

This idea likely makes sense for fleets, but consumers have voiced objections on several occasions to this lease-the-battery-pack program in use by Renault.

Quoting Fletcher:

“For an SME battery hire is a fixed monthly cost, much easier to budget – you are not at the beck and call of fuel price changes.”

Business Car Manager states:

“Going electric particularly suits the kind of uses a van in the Kangoo’s sector is likely to be put to.”

To which Fletcher adds:

“Typically they will be used by SMEs with a small fleet, based at a central depot, which do their delivery rounds during the day and return to the depot at night – that works really well for electric vehicles.”

The problem is that Renault’s battery leasing strategy has swayed potential consumers to look elsewhere.  On the fleet front though this leasing idea is appealing, so if Renault expects its EV sales to increase this year, then look for that bump to come from fleet purchase.

Soon, we think Renault will abandon battery leasing for private purchase.  Then, perhaps its EV sales will increase even more.

Source: Business Car Manager

Categories: Renault

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13 Comments on "Renault Sees Fleets As Key To Driving Up Sales Of Its EVs"

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There is no need for Renault to ‘abandon battery leasing’.

It is an attractive option, especially for businesses.

But that is just what it should be, an option.

+1

+2

You read my mind. I don’t think I would personally want to lease the battery, but I would enjoy the ability to study both options and decide for myself. It means a consumer that enjoys everything about the product doesn’t need to look elsewhere if they don’t like how they get the battery. I could also see possibilities with a Tesla-like financing where you could choose to sell the battery back after so many years.

Yes, the key word being OPTION. Let people lease, let people buy, or let people buy but lease the battery.

Let the consumer decides what works best for them. It varies depending on the particular consumer, the local tax codes, etc.

Why would anyone pick a Kangoo Z.E. or its copycats over a e-NV200? The Nissan seems superior in pretty much everything unless you are french. I can’t imagine that beeing a bit smaller is a pro in that environment.
I expect some price cut for the Renault to be compatible as soon as the Nissan is available.

Why would a company want to lease only batteries over the full car?

Dunno. This is about financing options, not technology, and the attractiveness of options depends on the specifics of the case, including most notable the precise tax system that the country or state uses. So for instance here in the UK people who have use of a vehicle which they use for business get charged for a proportion of the cost of the vehicle against their income tax, with rates which vary according to the vehicle, with much lower rates for electric vehicles. I can imagine, although I don’t know specifics, tax regimes where it is attractive to buy the vehicle but lease the battery, or more simply situations where someone can raise the money for the vehicle without the battery, but the price including the battery as a straight buy is too high. In general I would agree with you though, as battery technology matures. When EVs were first coming into mass production however I was a fan of battery leasing, so that the customer did not bear the risk of new technology to the same degree. Things can go wrong ( Leaf ‘cough’ Arizona ‘cough’ ) Now though unless the tax and benefits system is even stranger than usual,… Read more »

I like the fact that focus on fleet vehicles continues to increase as this bodes well for the EV market in general. Fleet vehicles will increase visibility, and develops more of a sense of trust of the technology in those that previously would have doubts. Kind of a “If it works for their business and they trust it, I can too” thing happens.

Fleets really should be buying EVs like crazy. Now that ‘off-the-shelf’ reasonably priced EVs are available pretty much all local delivery services should use them. Why?
1) local delivery does not need more than 80 to 100 miles of range each day.
2) Fueling is extremely cheap.
3) Tax-credits
4) Reduced fleet maintenance costs.
5) Perfect application for EVs (stop & go city driving).

I predict Renault will go into Chapter 7 between this fall and next spring.

I hope for your sake you not a gambling man.

…its been a long time since Renault last didn’t report an annual profit. Lots of assets, low liabilities. They really have done well weathering the Euro-market, all things considered.

That is gonna be pretty hard considering they are not an American company.