Nissan and Mitsubishi have confirmed plans to invest in Renault’s electric vehicle (EV) unit Ampere ahead of a much-anticipated listing next year.
The Japanese carmakers confirmed on Wednesday they would invest up to €800m (£685m) euros in the French carmaker’s EV and software arm, which has been carved out from the rest of brand.
The company is targeting revenues of at least €10bn in 2025 for the new unit, eventually reaching €25bn in 2031. An Ampere IPO is likely to take place in the first half of 2024, subject to “favourable market conditions,” the firm said.
Nissan chief executive Makoto Uchida told reporters the company would use the EV unit’s software and connectivity innovations in other markets outside Europe adding that “developing electric vehicles all over the world alone would be very challenging.”
The three car giants ended a common purchasing agreement in September as they looked to focus on individual projects and respond quicker to automotive markets in different regions.
In July, Renault and Nissan finalised the terms of a restructured alliance following months of negotiation and freeing up both companies to respond to the rapidly shifting market.
But some analysts have expressed caution in Renault’s project. In a note last month, Jefferies expressed “strong reservations,” over an Ampere IPO, pouring cold water on a valuation of €10bn.
Jefferies are forecasting a figure between €5 to €7bn amid a “challenging” last few years for EV manufacturers. “Renault will certainly argue it has a faster path to profitability for Ampere and higher valuation, but we believe an IPO would dilute existing shareholders from future value drivers,” it said.