European carmakers compete in EVs: Renault Ampere's IPO may hit 10 billion euros.

During the 2023 International Motor Show Germany (Internationale Automobil-Ausstellung, abbreviated as IAA), Renault's CEO Luca de Meo announced plans for the IPO of its electric vehicle division, Ampere.

Luca de Meo stated that, if market conditions allow, Ampere plans to go public in the spring of next year. Considering the current economic landscape and the outlook for the electric vehicle market, Ampere's valuation could be between 8 billion and 10 billion euros.

Renault has adopted a business strategy of splitting its operations into two divisions: the traditional combustion engine division and the electric vehicle division, Ampere. This decision aims to offer clearer and more specialized products while better addressing challenges from competitors in China and the United States. According to automotive consulting firm invev, as of now, Chinese electric vehicle brands account for 8% of new electric vehicle sales in Europe, up from 6% last year and 4% in 2021.

Ampere's assets include car platforms, new electronic and software infrastructure, factories, engines, and engineers. Although analysts have projected Ampere's valuation could be between 3 billion and 4 billion euros, most market participants believe this valuation does not fully reflect the true value of all Ampere's assets.

Renault's move aims to distinguish more clearly between its traditional combustion engine operations and its electric vehicle business, better meeting the growing demand in the electric vehicle market. Luca de Meo mentioned that Ampere's IPO would help Renault maintain an advantage in the competitive market and seize new opportunities in the digital asset market.

In response to competition from electric vehicle manufacturers, such as those in China, Renault plans to take its electric vehicle division, Ampere, public. Additionally, major automotive manufacturers are springing into action, with Mercedes-Benz and BMW planning to launch new models, and Volkswagen developing partnerships in China.