The new Renault 5 EV super‑mini is creating a real buzz for all the right reasons – I haven’t seen a small hatchback ignite passion like this in years, and it certainly isn’t because of a big discount.
And 84% of its buyers are new to the brand too. This gives R5 one of Renault's highest conquest rates ever, according to this week's Autocar.
People are trading in MINIs, Ford UK Fiestas and Fiat 500s, but there’s no clear demographic – buyers are coming from premium SUVs and city cars alike.
Who says people don't want EVs?
Managing Director Adam Wood says the 5’s retro‑futuristic styling and emotional appeal are what draw people in. It's well priced at around £23k and offers great runnings costs but ultimately the style, the story and the fun factor are all far more important than the price.
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Now let's compare that to talk of the government’s new Electric Car Grant (ECG). What's not to like about up to £3,750 off EVs under £37k?
Sounds simple in theory, but grants depend on sustainability credentials and many manufacturers still don’t know which band they’re in! And don't rush in either as anyone buying an EV before approval won’t get the money back.
As a result, this week quick thinking emerging brands, particularly those unlikely to meet grant criteria are matching the grant with their own discounts. I admire how quickly they've done this and it's capturing headlines. But is this really the answer?
You can already feel a price war brewing. It may be good for consumers today but it's a short term strategy for the industry.
If you’ve read our posts about Renault Group’s heritage, you’ll know We Are Acuity believe brands win hearts through story and meaning. Renault isn’t clinging to the past; it’s weaving its history and future together.
But there are many others doing it really successfully too Alpine, BMW Group, and Morgan Motor Company are just a few I could name - and many more could seize the opportunity.
This approach is why Renault can launch a £23k EV and attract such a high conquest rate without resorting to the heavy rebates that distress its brand.
Newcomers who rely solely on price cuts may shift some metal today, but they won’t build loyalty tomorrow.
So here’s our take: celebrate the grant – anything that makes EVs cheaper is welcome – but don’t be seduced by the race to the bottom.
Design, emotion and storytelling remain the strongest levers for conquest and retention. And savvy brands get that.
Chapeau Renault for leading the way! We'd love a chat.
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