How Renault develops a retrofit offer for its professional customers
Renault recently announced a partnership with TOLV to convert its Renault Master range of business vehicles into electric vehicles. Julie Vatier, Vehicle and circular economy After-Sales Business Director at Renault, tells us more about this opportunity for small and medium sized businesses.
Renault announced a partnership with TOLV to convert its Renault Master range of business vehicles into electric vehicles. Julie Vatier, Vehicle and circular economy After-Sales Business Director at Renault, tells us more about this opportunity for small and medium sized businesses.
You recently announced a strategic partnership with TOLV. Why did you choose this company?
TOLV (formerly Phoenix Mobility) has expertise in the development of retrofit kits for converting light commercial vehicles (LCVs) from internal combustion (ICE) to electric and and has demonstrated having an retrofit solution homologated for Trafic 2 in France positioning them as a pioneer in this field in France. Renault Group has the recognized industrial know-how, with strong expertise in LCV, electric and circular economy. Such a collaboration therefore makes sense.
Can you tell me more about this partnership? What will it be about?
The first stage of the partnership, in the form of a ‘Proof of Concept’ (PoC), consists of a co-development phase with the aim of marketing a first retrofit kit for Renault Master before the end of 2023. The objective of this first stage will be to market and install around 1,000 retrofit kits and to demonstrate to professional customers the benefits of the retrofit approach (electric driving comfort, respect for the environment, economic gains, etc.). Eventually, this innovative solution will be extended to other models.
The Retrofit offer will initially concern Renault Master vehicles. Why these vehicles in particular?
In general, light commercial vehicles have a high residual value due to their specific conversions/fittings. The economic balance is thus faster to reach. For our customers, this means they can avoid the expense of buying a new vehicle and additionally paying for a new conversion. Moreover, the 100% electric LCV offer is still recent and in full development. There is not yet a 100% electric LCV offer for second-hand vehicles.
Why did you choose Flins to assemble the kits?
Flins is home to the Re-Factory, Europe's first circular economy plant dedicated to mobility. The LCV retrofit activities correspond to the activities of the Re-Trofit division, which aims to extend the life of vehicles. Flins has all the industrial know-how and skills in the field of electrics to take charge of the assembly of retrofit kits.
There is a lot of talk about the acquisition of electric vehicles but at the moment it’s expensive. Is the retrofit more attractive financially for a vehicle owner?
We are currently finalizing the selection of components for the Retrofit Kit for the PoC. But for sure, the cost to retrofit an ICE LCV will be approximately 30 to 50% less expensive than purchasing the equivalent EV commercial new vehicle. In addition, the more the ICE LCV is fitted with specific equipment, the better the cost gap is in favor of the retrofit option – as in this case, no need to repay for specific equipment.
In your opinion, in order to reach the 100% clean vehicles goal, will retrofit become widespread, especially for private vehicle owners?
The retrofit market is still in its beginning, and at this stage there is a lack of experience and insight into the appetite of customers and their willingness to commit to this approach. This is why we are starting with a PoC with limited volume on a single platform, before considering larger investments.
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