Ampere Sets Ambitious Revenue Targets

Renault's newly independent electric-vehicle company, Ampere, has announced its ambitious revenue targets for the upcoming years. By 2025, Ampere aims to generate more than 10 billion euros ($10.88 billion) in revenue. This comes after the official separation of Ampere from its parent company on November 1.

In addition to its revenue target, Ampere also has several other financial and strategic goals in mind. The company plans to sell around 1 million vehicles by 2031, with a sales target of over EUR25 billion that year. Moreover, Ampere expects to break even in terms of profit and free cash flow by 2025, while targeting an operating margin of more than 10% from 2030 onwards.

An important aspect of Ampere's strategy is to achieve price parity between its electric vehicles (EVs) and Renault's conventional cars powered by internal combustion engines. The company aims for EV prices to match their gas-burning counterparts by 2027 or 2028. Analysts view this as a crucial step in the electrification transition. Ampere plans to reduce costs of its C-segment electric cars by 40% between the first and second generations to achieve this goal.

Despite its independence, Renault will retain a strong majority stake in Ampere's capital. The company has already received pledges of up to EUR800 million from cornerstone investors Nissan and Mitsubishi Motors. Additionally, Qualcomm Technologies is considering potential investments in Ampere.

Ampere's initial public offering is scheduled for the first half of 2024, pending favorable market conditions.