Renault electric vehicle prices

Renault’s electric vehicle pricing strategy looks expensive, if the prices of the Kangoo Z.E. light van are an indication of the prices of electric Z.E. cars that will be launched in 2012.

Buying a Renault electric car

Buying a Renault electric vehicle is not going to be as straightforward or as economical as motorists might have hoped. In a recent announcement (mid September 2010) Renault has revealed the pricing of the all-electric Kangoo Z.E. light van and given an indication of the pricing strategy behind its range of electric cars: the Fluence Z.E. plus the Twizy and Zoe concept-based cars.

The Kangoo will be launched in Britain next summer and the three Z.E. (zero emission) cars will roll out from 2012 onwards.

Renault has made two statements:

1. Its aim is to market electric vehicles at the same price as a diesel-powered vehicle of an equivalent size and equipment level. Customers will either buy or lease their vehicle and take out a subscription that covers the hire of the battery and the availability of new mobility services.

2. The Total Cost of Ownership of electric vehicles will be similar to that of internal combustion-engined vehicles from launch.

Renault has announced that when the Kangoo Z.E. van is launched in the UK next summer, it will be priced at £16,990 excluding VAT. But that price excludes the battery for which customers will take out a subscription of £59 per month excluding VAT. The contract is for four years at 9,000 miles per year (a low mileage for a light van) so that will add another £2,832, resulting in a total price of £19,822 excluding VAT.

Now compare that with the Ford Transit Connect – a light car-derived van with prices starting at £13,750 excluding VAT but including, of course, the battery. The Kangoo looks definitely expensive in comparison at £6,072 (44%) more than the Connect.

Total Cost of Ownership

However, the costs of electricity and maintenance for the Kangoo Z.E. are going to be lower than the fuel and maintenance costs of the Connect. So all in all we get to Renault’s recent statement on Total Cost of Ownership (price plus fuel and maintenance costs) which is, as the company says, the same for both the electric and conventionally-powered vehicles.

So where’s the advantage in an electric van? Especially when the Kangoo has a range of only 100 miles and a top speed of 81mph.