Interview with Rafał Grzanecki - Marketing Director Renault EAST

Q: Let's start with some numbers regarding Renault's performance last year. Globally, it was up almost 2%, and in Europe, 3.5%. How did the brand perform in the Baltics?

A: Even better. We are really happy. We pushed very strongly in all three Baltic countries last year to achieve growth. We are part of the Cluster East region, which includes Poland, Slovakia, and the Baltic countries.

Baltic countries grew more than Renault globally, more than Renault in Europe, or even the Eastern region. Combined, the Baltic countries saw a 28% increase in volume for Renault, with a moderate growth of overall industry. Passenger car sales grew by almost 6%, while LCVs (light commercial vehicles) demand was on a simiar level as in 2023. A 28% year-over-year growth is an excellent result.

Q: Very good results! What is the market share?

A: The results in Baltic countries where really great, especially because we focused heavily on passenger cars. LCVs were in transition due to the discontinuation of the old Master and the ramp-up of the new one. We didn’t want to lose volume, so we pushed strongly on passenger cars.

In the Baltics, we moved up six positions in passenger car rankings reaching 5th position on the market with 4,8% market share, a very impressive growth. In LCVs, we maintained our position at second place overall LCV, but in the VAN category (without pick-ups which we do not offer) we are the market leader with 23% market share.

Q: In the Baltic countries, there is always competition between the markets. Which country performed the best?

A: In terms of total market size, Lithuania is the biggest, followed by Estonia, and then Latvia. However, in terms of Renault’s absolute sales volume, Estonia is number one.

Last year, we sold more than 2,2 thousand units in Estonia. Estonia had the highest Renault sales volume among the Baltic countries. In terms of overall market size, Estonia ranks second with a combined PC and LCV market of almost 30 thousand units.

Q: You introduced several new models, such as the Scenic E-tech Electric, Symbioz, Rafale. How have customers received them?

A: It was an astonishing year for Renault in terms of new launches. In our region, we introduced six new cars—Espace, Symbioz, Captur, Scenic, Master, and Rafale.

I don’t recall any brand launching so many models in a single year. Regarding the Scenic, it’s a fantastic EV, and it received great recognition in the Baltics, winning awards in 2024.

However, the EV market share in our region is still low. Latvia had the highest EV mix in the Baltic region with 7,7% EV share followed by Lithuania (6,2%) and Estonia (5,4%). In European Union the EV penetration is much higher—about 15%. So we still have some catching up to do.

We are strongly pushing EVs, including the Scenic, as well as the upcoming Renault 5 and Renault 4. Additionally, we are focusing on LCVs, as the new Master now has a proper EV version with over 400 km WLTP range. We see strong potential for EVs in the LCV sector.

Q: What about the Symbioz?

A: Symbioz is ramping up. It's a new model, and we initially launched it only with a hybrid engine and high-option trims. This year, we are introducing a mild-hybrid version with lower trims, making it more competitive and we expect our volumes to grow.

By the way, the Captur is our best-selling passenger car in the Baltic countries, so we definitely see an opportunity for Symbioz to grow.

Q: What about the Espace?

A: Espace is a real great all-rounder with 7-seats configuration and state of the art E-tech full hybrid engines making it quite unique on the market. Currently we are launching Espaces’s younger brother the Rafale, with a 4x4, 4-control, PHEV version. In the Baltic countries 4x4 has significant demand in the SUV market, so we will be focusing on this version.

Espace is front-wheel drive, whereas the Rafale will offer 4x4 with a plug-in hybrid that has a battery of over 20 kWh, allowing 100 km of pure electric driving. The 4x4 plug-in hybrid will have 300 horsepower and four-wheel control—very attractive and advanced features.

We are not forgetting about the Espace, especially since it’s a seven-seater, but we are putting more emphasis on the Rafale, particularly for plug-in hybrids. In some Baltic countries, EV incentives also apply to plug-in hybrids under €50,000, which creates additional opportunities.

Q: Renault 5 and Renault 4 have a completely new design language. Will this be used for all Renault models or just EVs?

A: The Renault 5 and Renault 4 are retro-inspired models based on past designs. I recently spoke with Gilles Vidal, our head of design, in France about this.

The design language you see in the Scenic, Rafale, Symbioz, and Captur will be used in larger Renault models. However, we are also embracing retro styling for models like the Renault 5, Renault 4, and future Twingo.

So, we have a two-pronged approach: one design language for mainstream Renault models and another for our retro-inspired EVs.

Q: How strong is the appeal of retro styling for customers?

A: The biggest factor is whether customers love it or not. Some retro designs have been successful, while others have not.

However, we know that Renault 5 will work. The concept car was revealed three years ago, and the overwhelming feedback showed strong enthusiasm, not just in France but globally.

Even in regions where Renault 5 was not historically popular, like Estonia, Poland, and Slovakia, the internet makes it easy for people to discover its legacy. Our marketing strategy leverages the retro appeal, and it has worked. And it looks very good from CAFE (Corporate Average Fuel Economy) side.

The Renault 5 is already on sale in some countries, and it became the number one EV in France in the last two months of 2024. We believe it will work in many markets, though in some regions, customers prefer larger EVs with bigger batteries.

We have priced the Renault 5 competitively and believe it will help increase EV adoption, particularly in markets with strong incentives, such as Poland.

Q: You mentioned CAFE regulations. How important are they today?

A: Hugely important. CAFE regulations are one of the biggest factors in our sales strategy. Each OEM must meet specific CO2 limits or face penalties.

In reality, practically no internal combustion engine (ICE) car on the market meets the sub 95 g/km CO2 target. Even our hybrids, which are excellent, produce around 100-105 g/km.

This is why we need EVs and plug-in hybrids. EVs are at zero emissions, while plug-in hybrids are below 20 g/km. We calculate that selling one EV allows us to sell four or five ICE vehicles while staying within CAFE limits.

If we don’t sell enough EVs, we face a problem.

Q: Isn't this regulation only effective on paper? In reality, many plug-in hybrid owners don’t charge their vehicles regularly, especially if they don’t have home charging.

A: You’re right that some plug-in hybrid users primarily rely on the combustion engine because they lack charging infrastructure. This is why regulations will change with Euro 6e-bis increasing CO2 thresholds for plug-in hybrids.

However, plug-in hybrids will still be significantly below the standard ICE limits. From a CO2 equation perspective, they remain very beneficial.

Q: Will there be more plug-in hybrid models in Renault’s lineup?

A: For now, we are prioritizing EVs and hybrids. However, the Rafale needed a plug-in hybrid option as a flagship model, offering 4x4 and 300 horsepower.

For some users, plug-in hybrids with 20+ kWh batteries make sense, allowing them to commute 40-50 km daily on electricity while using petrol for long trips.

For these customers, plug-in hybrids remain a great option.


Q: Regarding the battery strategy for electric vehicles, will Renault focus on smaller, cheaper battery packs or larger, long-range ones?

A: Both.

First, when our CEO says we will produce a beautiful electric car below €20,000, it’s clear that we cannot put a 100 kWh battery in it because of cost constraints. For example, the upcoming Twingo, which we plan to position at around €20,000 in Europe, is a city car. For city use, a 35-40 kWh battery is more than enough.

With advancements in aerodynamics and drag reduction, we can achieve good efficiency with smaller batteries. This helps reduce costs and makes EVs more affordable for city driving.

On the other hand, there are customers who demand 500+ km of range. For them, we have the Scenic, which comes with a 87 kWh battery—twice the capacity of what the Twingo will have.

So, we are not following a single strategy like “only city cars with small batteries.” We need to cater to both ends of the spectrum.

Q: What about LCVs (light commercial vehicles)?

A: LCVs are also part of the CAFE equation, and we are investing heavily in this segment. The emission limits for LCVs are higher than for passenger cars, but they are still a challenge.

For example, the emissions target for LCVs is around 135 g/km, whereas a normal diesel van produces around 200-210 g/km. The gap is huge.

To meet these targets, we need larger batteries in vans. A small-range electric van wouldn’t make sense, especially when fully loaded. Most electric vans today are focused on last-mile delivery within cities, not on transporting two tons over 500 km.

Going forward, Renault’s small and medium-sized vans will be fully electric.

Q: Many people are curious about future technologies. What can you say about new engines, battery advancements, or hydrogen fuel cells?

A: We will launch a hydrogen version of the new Master van in about seven months. Hydrogen technology is fantastic—the challenge is refueling infrastructure. Finding hydrogen stations is very difficult.

EV technology, however, is evolving rapidly. Renault has a Technical Center in China, which was recently announced, and that’s where a lot of electrification development is happening because China is advancing in this field faster than any other region.

Battery efficiency is improving, but the main challenges remain mass and cost. New battery technologies are extremely expensive. If we want to offer a €20,000 electric car, clearly this is a challenge.

That said, as EV adoption increases globally, development costs will decrease. China alone sells close to 1 million new energy vehicles (NEVs) per month, so the global scale of electrification is rapidly growing.

Q: But with the EU introducing new tariffs on Chinese-made EVs, do you think manufacturers will start producing in Europe?

A: Possibly. History has shown that manufacturers always find ways to adapt, such as by shifting production locally.

However, we are not talking about competition here—we are talking about technology development and making EVs more affordable.

Charging infrastructure is growing rapidly, even though it is still not sufficient. Each year, the number of charging stations is doubling or tripling. For some consumers, EVs may not be the right technology yet, but the industry is clearly moving in that direction.

If we want carbon-neutral transportation, EVs are currently the most scalable solution. Hydrogen and synthetic fuels are being explored, but in terms of mass adoption, EVs are the most developed option right now.

Q: EV sales struggled last year. They are still expensive, and many were difficult to sell. Has Renault postponed its goal of transitioning entirely to EV production?

A: Renault is not betting on just one technology. We are developing hybrid versions of ICE vehicles alongside our EV lineup.

You are right—the price gap between EVs and ICE vehicles still exists, but it is smaller than it was five years ago. Cars, in general, have improved, and we expect continued growth in the EV sector, partly due to CO₂ regulations.

As of today, EU regulations state that by 2035, all passenger cars must be zero-emission. If this changes, it’s up to policymakers, not manufacturers. We are not the regulators—we are the producers.

Q: If policymakers were to delay the 2035 ban to 2050, would this impact Renault’s strategy?

A: Renault has reduced car development time from five years to just three years in some cases. For example, the new Twingo will be developed in just three years—an industry record.


So, while the industry typically plans five years ahead, Renault is running on a dual-track strategy. We are developing both EVs and hybrids.

For example, in 2024, Renault will offer four electric models but also eight ICE models with hybrid technology. We are not completely abandoning ICE yet—we are maintaining a balance to meet CAFE regulations and market demand.

Q: How does Renault introduce new technologies such as EVs to customers, given their higher price and why should they prefer EVs over plug-in hybrids?

A: We are investing in EVs, but ultimately, the customer decides. The key question is how to encourage customers to switch to EVs instead of hybrids.

In some ways, the automotive industry hasn’t changed—customers need to test the car. We have extensive test drive programs, including 24-hour test drives. We also invest in car-sharing technologies, integrating EVs into dealer courtesy car fleets. This allows customers to experience the cars when they need a temporary vehicle.

We believe EVs have many advantages in terms of performance, driving experience, and comfort. The driving noise, vibration, and harshness levels are significantly lower. People often say ICE cars have "soul," but how many really do? Does a four-cylinder diesel have a soul?

One reason EVs weren’t considered fun to drive in the past was their weight. However, new technologies are reducing mass. For example, the Renault 5 weighs 1.4 tons, which is comparable to ICE hatchbacks. It is fun to drive and a great solution for those who can charge their car regularly and don’t need a second vehicle.

Currently, in many countries, EVs are often a household’s second or third car. People love using them for daily city driving but still prefer larger ICE or hybrid cars for family trips.

EVs also come with incentives such as bus lane access and free parking. While these incentives encourage adoption, customers also appreciate the smooth acceleration, quiet ride, and lower maintenance costs.

Environmental concerns are another factor. Many customers choose EVs because they want to reduce their CO₂ footprint. This trend is reflected in other lifestyle choices, such as investing in heat pumps or solar panels. Society is gradually shifting towards more sustainable solutions.

Q: What is Renault’s position on self-driving technology?

A: We are currently at a high level of driver assistance, but the biggest obstacle to full autonomy is regulation.

The technology is already in our latest models, including adaptive cruise control, lane centering, and frontal collision prevention. However, current laws require drivers to keep their hands on the wheel and eyes on the road.

The real challenge is regulatory approval. The legal framework for autonomous driving is still unclear in the European Union.

Q: So, the technology already exists?

A: Yes. Autonomous taxis are already operating in some U.S. cities, proving that the technology works. Car manufacturers are not developing it alone; they are collaborating on solutions.

The biggest question is liability—if an accident occurs while the car is in autonomous mode, who is responsible? The software developer? The car manufacturer? This is both a legal and ethical issue.

The technology is already operational in controlled environments, especially for highway driving. The level of autonomy currently available in production cars is impressive, but it is still in a preventive rather than a fully autonomous mode.

Frontal impact prevention and automatic emergency braking have likely prevented countless minor accidents.

Autonomous driving will continue to evolve, but regulatory and ethical challenges must be addressed. Governments need to adapt legislation, set clear usage limits, and determine liability rules.

In terms of technology, however, autonomous driving is already a reality.


Q: Many premium brands like BMW and Mercedes have introduced subscription-based services for features like heated seats. Will Renault implement similar services?

A: For the time being we don’t have any plans for subscription-based services like activating adaptive suspension or heated seats through a paid subscription.

Our approach remains the same: when we introduce new technologies, we offer them as optional packages or features. Customers prefer this model—if they want a feature, they pay for it upfront rather than subscribing to activate something that’s already installed in the car.

We are improving our My Renault app with additional functionalities, but this will also be a one-time purchase decision when buying the car.

Q: Renault previously developed a 1.33-liter petrol engine in collaboration with Mercedes. Mercedes customers had good feedback about it. Why did Renault discontinue it?

A: We are still offering the 4-cylinder 1,3-liter engine in a mild-hybrid technology. You can find it in our C-SUV the Austral with 160 horsepower combined with an automatic gearbox. It is complementing the range of our E-Tech full hybrids.

Q: How the new Renault Master performing?

A: We are quite happy with its performance, but we are still in the early launch phase. LCVs, particularly large vans, are complex products.

The Master lineup includes different lengths, heights, front-wheel drive, rear-wheel drive, automatic and manual transmissions, and various payload capacities. At launch, we covered only 65–70% of the full range. Some key variants, like rear-wheel drive and the longer L4 version, are still to come.

Conversions (customized vehicles built on Master’s platform) are also important. We have a strong market in chassis and frame conversions, but many of these were not available at launch.

We are happy to say that orders for the new Master are increasing. This year, we will introduce key new versions:
- Rear-wheel drive, important for heavy transport and international logistics
- L4, H3 versions, the longest and highest variant
- Automatic gearbox, which accounts for 30% of the segment, especially in high-end configurations

We are fully committed to LCVs and want to be the number one LCV brand. The Master is critical to this, as the H1 segment (large vans) accounts for over half of our LCV sales.

Q: What are your expectations for the electric Renault Master?

A: Quite high. The previous electric Master had a very limited range, making it unpopular.

The new electric Master has a 87 kWh battery and a range of over 400 km, making it far more competitive.

The electric LCV market is still smaller than the passenger EV market, but we want to be a major player. Some of our fleet customers, especially international corporations, already have internal policies requiring a mix of electric vehicles in their fleets. These companies are actively inquiring about the new Master EV.

We aim for a significant share of the electric van market, both for environmental reasons and to comply with CAFE targets, which apply to LCVs as well.

Q: Renault previously had the pickup Alaskan. Will there be a new one?

A: I understand why you're asking—Baltic markets have high pickup sales, and a new Renault pickup would be a strong competitor.

However, at the moment, there are no plans for a new one-ton or 1.5-ton pickup for our region. This segment is primarily focused on South America, where Renault designs and produces such models.

It’s unfortunate because a new pickup would perform well in markets like yours, but for now, we have to work with the lineup we have.

Q: When will the new Alpine models arrive in Estonia, and how do you expect them to perform?

A: The decision to launch new models in the Baltic countries is still under evaluation.

There is a lot of work being done with local partners. The product lineup will be fully electric, including the A290 and A390, both coming by 2026.

While I can’t share details yet, discussions are ongoing about when and how to introduce these models in Estonia.

Q: Car sharing and micro-mobility are becoming key transportation solutions. What are Renault’s plans in this area?

A: Renault is actively investing in car-sharing solutions through our financial services branch, Mobilize.

We already have internal car-sharing programs, allowing employees to use shared Renault vehicles. We are also expanding car-sharing partnerships, such as Traficar in Poland, where Renault provides most of the fleet.

We are currently developing Mobilize Share, which allows customers to access vehicles 24/7, even outside dealership hours.

Car sharing has not replaced traditional leasing or car ownership as some predicted 10 years ago, but it remains a strong business in urban areas. Cities are increasing driving restrictions, making car sharing a practical alternative for some users.

Q: What are Renault’s biggest challenges this year?

A: The biggest challenge is adapting to stricter CAFE regulations.

- The 2025 CAFE target requires lower fleet-wide CO₂ emissions, and the next major reduction comes in 2030.
- This means we must rethink how we plan our sales mix, pushing hybrid and electric vehicles over conventional ICE models.

Fortunately, we already have seven hybrid models that perform well, averaging 5L/100 km fuel consumption, with up to 80% electric driving in cities.

Another challenge is expanding EV adoption in our markets, where EV penetration is still low.

We are optimistic that models like the Renault 5 and Renault 4 will attract customers who buy cars based on design and emotion rather than engine type. Some will choose these models simply because they love them, not because they specifically want an EV.

We are also investing heavily in pricing, marketing, and communication to ensure these launches succeed.

Q: Where do you see Renault in a year?

A: We want to keep growing. I hope that when we meet next year, I can tell you that we’ve grown another 30%.