The brand new Renault (RNLSY (OTC:RNLSY)) 5 battery electric vehicle (BEV) model could be the most important yet. That's according to analysts at investment bank Citi.
Renault recently showed its brand-new Renault 5 BEV model at a slimmed-down Geneva Auto Show.
Citi believes that At €25,000, with 249 miles of range from a 52kwh battery, Renault is "hitting the middle" of the important B-segment of the market, which accounts for more than 20% (2 million units) of European private vehicle demand (excluding light commercial vehicles).
"With many sub-€20k ICE cars disappearing from the market since 2019, and relative to a Clio starting at €19.6k, we think the new Renault 5 has a great opportunity to sell at least 100k units p.a. in Europe alone," wrote analysts.
If it doesn't, then Citi feels there may need to be a debate regarding whether Europe can meet its BEV targets and/or 2030 emission standards at all.
"With Twingo coming below €20k by 2026, and with DACIA in ICE, Renault should have the best low-cost model portfolio in Europe," the bank argues, reiterating its Buy rating on the stock.