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French carmaker Renault said Tuesday it plans to phase out sales of simple internal combustion engine vehicles in Europe by 2030 as part of a broader strategy centered on electric mobility and software development.
The company outlined the shift while presenting a new multi-year roadmap that also aims to lift annual Renault-brand vehicle sales by nearly 23% to 2 million units by the end of the decade.
Under the plan, Renault targets 100% electrified sales in Europe by 2030, while electrified vehicles are expected to represent 50% of sales outside Europe. The figure includes hybrid vehicles alongside fully electric models.
Despite the shift, fossil fuel vehicles still made up a large share of Renault’s recent European sales. Around 40% of the cars sold in the region last year were powered solely by conventional internal combustion engines, the company said.
As part of its technology push, Renault plans to develop a new electric vehicle platform together with Google, integrating software and vehicle systems more closely.
The platform will run a new operating system for cars based on Android. Renault said the system is designed to allow 90% of vehicle functions to receive remote updates, reducing the time required to roll out software improvements and new features.
The company also said the platform will support ultra-fast charging, with the ability to recharge batteries in as little as 10 minutes under certain conditions.
Renault plans to launch 22 new models in Europe, including 16 electric vehicles, while 14 additional models are scheduled for international markets. The transition will also extend to its budget brand Dacia. Renault said it intends to expand Dacia’s electric lineup from 1 model to 4 by 2030 as it broadens access to lower-cost electric vehicles.
Dacia CEO Katrin Adt also said the new Dacia Striker family car will be produced in Türkiye, with a starting price below €25,000.
Renault chief executive Francois Provost said the company’s goal is to focus development and production in Europe. "Our ambition is to design and produce in Europe products that are best-in-class in terms of desirability, technology and competitiveness," Provost said.
Renault acknowledged that electric vehicles currently generate lower margins than traditional cars. The company’s operating margin declined from 7.6% in 2024 to 6.3% last year, and it expects the figure to drop further to 5.5% next year as the transition accelerates. Renault said it aims to keep operating margins within a 5–7% range over time.
Despite margin pressure, the group reported improved overall performance in 2025. Global vehicle sales rose 3.2% to 2.34 million units, while revenue reached €51.44 billion ($59.93 billion), marking a 1.8% year-over-year increase.
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