Renault, Volkswagen but also Tesla and Opel. More and more general manufacturers are working on an electric car for less than 25,000 euros, the equivalent in size of a Clio or a Corsa, but with zero emissions. The first to launch is Citroën, which this week presented its new C3. The Chevron brand thus taking advantage in this segment that, although it attracts desire, also represents an industrial and technological challenge.
“We think different”
Because until now the smallest electric models easily cost 10,000 euros more. The Peugeot e-208 or the Renault Zoé exceed 35,000 euros in first price without bonuses. Only Dacia manages to offer the Spring at 20,790 euros. But this model is much smaller and has less autonomy than what this new generation of electric cars aims to offer. Spring also meets in China, a criterion that could represent an obstacle in the coming months, according to the rules of the new bond. The challenge now is to manufacture an affordable model in Europe.
And to achieve this, the groups had to review the way they designed the vehicles.
“We think differently,” summarizes Thierry Blanchard, brand project director at Citroën.
This new approach is reminiscent of that followed by some Chinese brands, where the money invested is allocated more to equipping the vehicle with a high-performance screen than to elegant plastic foams.
“We have a super simple diversity, also for the customer, since they only have to choose between two versions, there are no options and this also helps from the manufacturing point of view, to have a car with little industrial diversity,” explains Thierry Koskas. , CEO of Citroën, on Good Morning Business.
“Manufacturers must be prepared to put less content in a car compared to our European standards, such as the 2CV or the R5 of the 70s,” says Alexandre Marian, partner and general manager responsible for the automotive sector at AlixPartners.
“Simply necessary”
According to this specialist, designing this type of car, with only the essentials in terms of equipment, requires changing the mentality of engineers much more than the habits of customers. “Drivers need mobility above all, some don’t care about options, it is in this niche where Dacia has positioned itself,” continues Alexandre Marian. However, brands do everything possible not to offer a low-cost product. The C3, for example, will not have a touch screen in the first equipment level, but will offer 320 kilometers of autonomy.
“Unpacking” a vehicle, as we say in the jargon, requires above all designing from the beginning a platform “just what is needed.” “We work with the project teams and our suppliers to make the most of every euro and so that every euro we invest in the car benefits the customer with different battery technologies and slightly different platform options,” explains Thierry Blanchard.
The C3 platform was conceived from the beginning to be electric and must be shared between several models of the Stellantis group: an Opel, a Fiat, in addition to the small French one, L’Argus explained in January, to save money. scales.
The battery, a determining criterion
Much of the manufacturers’ work also involves the battery, which accounts for almost a third of the vehicle’s cost. Citroën has chosen an LFP (Lithium-Iron-Phosphate) battery, a different technology from that of the electric C4s, although built on the same platform. A type of battery that is easier to integrate, with interesting features, Citroën explains to us. This is also the type of battery that Tesla uses, and that according to the Inovev firm, the manufacturer intends to install in the future Model 2.
“It is a battery made in China,” continues Thierry Blanchard, “it offers a good level of charge, at a really lower cost, which allows us to have a car for less than 25,000 euros.”
Manufacturing your battery in China is still an advantage today. “The prices of all raw materials for electric cars have skyrocketed since the start of the war in Ukraine, explains Alexandre Marian. Lithium poses real challenges when it comes to guaranteeing supply, but the Chinese have signed long-term contracts on these materials, so they have very competitive prices. In Europe, on the contrary, we are still installing gigafactories, we still have to wait for the investment to be recovered.”
The question of materials is also crucial in the electric motor, which contains rare earths. According to the Inovev firm, to reduce the costs of the Model 2, Tesla intends to offer it an engine “devoid of rare earths.” And here the architecture of the vehicle is also reviewed. “The number of cables will be reduced thanks to the change from 12 to 48 V for the battery intended for accessories,” Inovev also specifies.
Easier manufacturing
In factories, simplicity of design also has consequences.
“We have a super simple manufacturing process,” says Thierry Koskas. “It took us 25% less to manufacture than the current C3.” Enough to produce more vehicles with less energy.
Citroën C3, Volkswagen ID.2, Opel (with the next electric Corsa), Tesla Model 2 or even Renault, R4 or R5. The competition is increasing little by little. The C3 will go on sale in the second quarter of 2024 and pre-orders will open this week, ahead of the R5, which should arrive in the second part of the year. Citroën therefore hopes to pocket a bonus for the first to reach this market, but it does not intend to stop there. The Chevron brand has already announced the arrival, in 2025, of an even more economical version of the C3, with only 200 kilometers of autonomy, but for less than 20,000 euros.
Source: BFM TV
