Hello. Hello, everyone. I am very happy to be with you today to present Renault Group new midterm plan, futuREady. This plan is a result of nine months of hard work with the leadership team and with colleagues all across the company. It is a great honor for me as CEO to present this ambitious plan, which sets the next step for our group. futuREady is about making Renault Group robust and truly ready for the future. Being future ready is not only about a vision, about an ambition, it is also about execution. This plan is a concrete detail roadmap. It will make our group able to perform whatever comes next. futuREady is realistic and credible. It is a name of our journey to reinforce our model thanks to our employees, but also our suppliers, our dealers, and our partners.
With futuREady, our vision is to become the reference European OEM. What does it mean? First, it is about growth and product. In Europe, we'll deliver a second successful lineup in a row across our three brands. Outside Europe, we'll drive a targeted offensive where growth is happening. By 2030, we will launch 36 new models. Second, reference OEM means technology and innovation. Renault Group will develop and master its own technologies in Europe at the highest level on all that matters most in our industry, from electric vehicles to intelligent AI-driven cars. Third, operational excellence. In an automotive world that is more uncertain than ever, we must stay focused and be best in class on everything we can control. Three examples. Quality. Over the last five years, we reduced quality incident by 50%. During this new plan, we will do it again. Engineering.
We'll make two-year development the standard for all our cars. AI. At scale, we boost our operations with AI and use it to change the paradigm of customer experience. The fourth pillar of our vision is engagement. We are trust ready. We built this plan collectively, and we'll deliver our plan collectively. We are committed to enhance the employability of our people. We are also committed to our supplier ecosystem and our network of nearly 10,000 dealer sites worldwide. Being the European automotive reference means we will remain deeply rooted in Europe. I am confident that with our teams, we will show Renault Group can continue to develop in Europe, to produce in Europe, highly competitive vehicles. With futuREady, Renault Group will deliver concrete results. First, growth. We expect total revenue to grow at a mid-single-digit rate over the midterm.
Second, profitability and cash generation over the midterm. From 2026 onwards, we target a sustainable group operating margin of 5%-7% of revenue with progress over the period. We aim to generate strong automotive free cash flow of minimum EUR 1.1 billion-1.5 billion per year on average, more than twice our historical performance. We will stay disciplined on capital allocation with clear priorities. Invest in products, keep a strong balance sheet, and of course, deliver fair returns to our stakeholders. To our employees, of course, by growing employee shareholding towards 10% of the capital over the long term. To shareholders with a EUR 2.2 dividend paid in 2026 for 2025, and a clear objective to increase the dividend per share in absolute value over the midterm.
In short, futuREady is about steady growth, higher profitability, strong cash generation, and value shared with our employees, partners, and shareholders. futuREady is deeply rooted in Renault Group 127-year legacy and in the strength of our three brands. With this new plan, we are not looking back, we are looking forward, and we are putting everything in place to be futuREady. To reach our goal, we have a key advantage. We are not starting from scratch. Quite the opposite. Where do we stand today? Renaulution was a success. It has given us a solid foundation thanks to all the teams under Luca de Meo's leadership. We have a strong lineup with 32 models in five years. Scenic, Renault 5, A290 have all won Car of the Year awards. We also built a clear complementary brand portfolio, and customers are responding positively.
Renault brand is number two in Europe. Dacia is number two in the retail channel in Europe. Dacia Sandero is the most sold car in Europe, and Alpine has already tripled its sales in just three years. Our value over volume strategy is setting us apart from European competitors. Our retail channel mix is more than 17 points above the market average. Our residual values are five to 12 points higher than our European peers. Mobilize Financial Service s is providing financial packages to over 60% of our sales. Thanks to our dedicated teams, we have also built a disciplined go-to-market strategy. With our platform family approach, we have achieved high commonality between our products. We delivered a EUR 400 COGS reduction per vehicle in 2025.
Our plants are running at over 85% utilization rate, and we brought distribution costs down by 10 points for Renault Brand, while Dacia now delivers best-in-class total distribution cost. As you can see, over the last five years, we proved we can win. Now, we must prove we can last. Now, I invite you to join us for this new next chapter. It is ambitious, it is exciting, and it is futuREady. Let's start with growth, product, and customer experience. Renaulution was about recovery in Europe, and it delivered. In this new phase we are opening today, Europe will remain our priority. With a clear ambition, deliver a second successful product cycle in a row to become the reference European OEM. With futuREady, we look also expand internationally. We are launching an offensive in selected fast-growing markets like India and South America.
Together, these two regions will generate more than 60% of the industry volume growth in the markets where Renault Group is present. Doing so will compete across a much broader footprint, a market of nearly 50 million units a year, representing 55% of the global market. Europe as our anchor, new markets as our engine, this is a way we'll deliver consistent mid-single-digit growth year after year. Our growth plan is built for sustainability because it is balanced. First, from a geographical standpoint. As you can see, we grow in each market. Europe remains our core market. Internationally, we are building an agile and de-risked business model compared to our peers. On one hand, we are not exposed to the major challenges faced by players operating the Chinese and U.S. markets. On the other hand, we already have strong industrial and commercial footprints in high-growth geographies.
We can also rely on our competitiveness to supply a few strategic partners. We are also adopting a balanced and de-risked approach from a technological standpoint. In Europe, we'll keep pushing hard on EV while offering a complete range of hybrid solutions. We target Renault Brand to be 50% electric, 50% full hybrid by 2030. Outside Europe, we target 50% electrified sales in 2030 for Renault Brand, mainly driven by our E-Tech full hybrid technology. To sustain this growth, we will launch 36 new model by 2030. Even more than during our great Renaulution journey. In Europe, we keep the pace with 22 launches, including 16 all-electric vehicles. At the same time, we'll accelerate in international markets with 14 new launches, nearly twice as many as during the Renaulution.
We are building the next chapter with more product, more EV, more hybrid, and more international reach. In short, futuREady is about growth across all markets and all segments we operate. To go further in detail, let me now hand over to the CEOs of our three brands, Fabrice for Renault, Katrin for Dacia, and Philippe for Alpine. Let's start with Renault Brand. Fabrice, the floor is yours.
Well, well, thank you, François. Good morning, everyone. With more than 100 years of history, Renault has forged a strong brand identity. We have, and we will design what the French call, voiture à vie, cars made for life. This DNA is expressed through strong brand markers. First, designed to be loved. Our ambition is to spark emotion at first glance with cars that stand out on the road. Second, people first tech. Technology should serve people. We deliver best-in-class connectivity with smartphone simplicity, and we focus on useful features that make mobility safer for all road users. Third, electrified by passion. We are committed for electrification from full hybrid to full electric for better efficiency and CO2 footprint reduction. Electrification should never come at the expense of driving pleasure. We make electrified driving engaging and joyful. Finally, crafted space.
We design onboard experiences that adapt to people's way of life. Modularity, versatility, storage, and roominess are core Renault strengths, even in compact silhouettes. This DNA drives an attractive product lineup designed to address a wide range of customer needs and driving a strong conquest dynamic. It is embodied in every car we make. In iconic vehicles such as R5, Twingo, or the Renault Duster, which has just made a great comeback in India. In long-standing success stories like Clio, Scenic, Trafic, or Master, and also in our newest products from Symbioz in Europe to Boreal and Filante outside Europe. With futuREady, we are now accelerating the next cycle of growth for the Renault brand, thanks to three powerful drivers. Our ambition is clear. Reinforce our European leadership, accelerate electrification, and go faster internationally to confirm Renault as the number one French automotive brand worldwide.
Let's look now at the first driver. In Europe, we will offer the most attractive lineup with 12 new models by 2030. In A and B segments where Renault has historic leadership, we will complete the success of Renault 5, Renault 4, and Clio 6 with the arrival of Twingo, our new A segment disruptor. In C and D segments, our first offensive is already delivering strong residual values and profitability. Now, we are preparing the next wave. A new generation of EV and full hybrid cars combining innovation, value, and even better market relevance in Northern European countries. I will give you just after some examples of what we are cooking up. In LCVs, Renault now has one of the strongest lineups in Europe with a clear objective, pushing electrification and European leadership with seven new models, including, of course, the new Trafic E-Tech. Second driver, electrification.
Electrification is a powerful growth accelerator for Renault. To stay agile, we will continue beyond 2030 our full hybrid powertrains, which are among the best in the market. Because choosing hybrid is the first step toward electric mobility, we will extend our full hybrid offer in international markets as a solution to replace diesel and prepare markets transition towards electric. Electric cars will, of course, stay at the core of our strategy with our new EV platform. We will leverage it to develop Scenic new generation and the future Rafale. Imagine cars with no range anxiety, super-fast charging, and competitiveness. In short, a hassle-free experience to go full electric. This will become a reality thanks to this exceptional asset. It's of course, too early to show you all the cars, but Philippe Brunet will tell you more about it. True to our DNA, the onboard experience will be reinvented.
Let's now begin and unveil our R-Space Lab. Let's focus on the interior. It's not a future production car. It's a lab that explores the future of Renault's voiture à vivre and expresses our brand DNA at its boldest. As you can see on this video, the cockpit is a strong example of people-first tech. The curved screen, called openR panorama, runs across the entire dashboard, displaying information with optimal readability. The controller screen is as simple to use as a smartphone and offers an intuitive experience. Our R-Space Lab also pushes safety further with innovations, such as Safety Coach with personalized assistance, thanks to embedded AI, and alcohol detection for young drivers. Inside, space and comfort reach a new level. The cabin is filled with light, thanks to large panoramic glass surfaces, reinforcing the feeling of space.
In the front, you can enjoy a lounge-like experience with smart storage and a relaxing leg rest position. In the rear, the cabin is designed for real life with fully modular seats that slide and fold to adapt to passengers. Several of those innovations will make their way into our next launches. Let's now move to international markets, our third driver. Our objective is clear, fully leverage our international hubs to capture growth while reinforcing our global competitiveness. Out of Europe, we will launch 14 new models by 2030. This strategy is focused on Latin America, Korea, and India, where we already have strong industrial and commercial footprints. Together, these regions represent a market equivalent in size to Europe. Thanks to platform sharing, selected strategic partnerships, and agile local organizations, Renault will develop global vehicles adapted to market needs. India is the cornerstone of our plan.
It is one of the fastest-growing automotive markets with electrification and higher segments gaining momentum. We have 15 years of presence there, deep market knowledge, and a fully integrated ecosystem. With the takeover of the Chennai plant and the launch of four models, including electric cars and full hybrids, India becomes a global hub serving both local and international markets in production and sourcing. Bridger Concept perfectly illustrates this strategy. It is built on a simple insight. As cities grow, customers need cars that are compact, agile, safe, connected, and affordable. Now, I'm proud to introduce you to our new flagship in our international offensive, rooted in Renault's DNA and built on a strong, highly competitive value proposition. This is a game changer. Bridger C oncept is a B-segment car that delivers radical proportions. It combines extremely compact exterior dimensions with exceptional interior roominess.
With a length under 4 m, it delivers all at once generous knee room, a wide stance, and a 400 L boot. The high driving position provides excellent front and rear visibility and a strong feeling of protection. It will come to market as a true multi-energy vehicle, including EV, with best-in-class efficiency. Bridger C oncept will be a key pillar of our global competitiveness with India at the heart of its development. Designed as a powerful conquest tool for the B-segment, it will start with India and quickly expand to other countries. We are moving fast. Our goal is to begin production in India next year. You see, with this strategy, Renault is loyal to its legacy while being future-ready. By 2030, our ambition is clear. To sell more than 2 million Renault cars worldwide with half of our sales outside Europe.
We aim for 100% electrification in Europe and 50% electrification outside Europe. We are future proof thanks to a robust electrification strategy and attractive lineup that unlock new markets. We are also future-driven with an ability to grow beyond Europe and capture international opportunities at the highest level of competitiveness. Now, I'm very happy to hand over to my colleague, Katrin, who will share with you the Dacia plan. Thank you, Katrin.
Thank you, Fabrice, and hello, everyone. At Dacia, we stand for the best value for money. We constantly redefine the essential, what really matters for our customers. This is our compass and our purpose. Our brand is built on three strong pillars. First, essential but cool. I would even say essential and cool. We focus on what really is necessary for our customers without ever giving up on desirability. Bigster is a perfect example, a true C-segment SUV, both essential and attractive. Second, robust and outdoor. The success of Sandero and Duster are good examples. Robustness and outdoor spirit are a true Dacia signature and will continue to shape our future models. Finally, eco-smart. Eco meaning both economically and ecologically. It is expressed, for example, in our LPG strategy, but also in Spring, Dacia's affordable full EV offer and in Starkle, an innovative material made with recycled plastic.
Dacia has always been in tune with its time. Our journey reached a major milestone last year with 10 million vehicles sold since 2004, the year Logan reshaped the market. What is Dacia's magic formula? People ask us all the time. It is simple, delivering the best value for money. Behind it stands a clear philosophy and disciplined execution. First, a unique and profitable business model, a design-to-cost approach, targeting a 15% cost advantage by focusing strictly on what really matters most to our customers, the essentials. An efficient industrial and sourcing footprint, and a highly effective distribution model costing less than half of the Western European average. This is why Dacia is delivering a strong margin profile. Another key pillar of our success is customer loyalty and conquest.
70% of Dacia owners stay with the brand when renewing their car, and another 10% move to Renault, meaning 80% remain with the Renault Group. At the same time, Dacia is a true conquest brand. 65% of buyers come from outside the group. Finally, there is retail performance. Imagine, Dacia is now Europe's number two retail brand. I will just take two examples. Sandero, the number one model across all channels last year, and Bigster, the number one compact SUV in retail in the second half of 2025. With Dacia's midterm plan, we are not changing the recipe of our magic formula. We are just tuning up the power. Same fundamentals, same philosophy. Everything starts with one simple question. What do our customers truly need and what are they ready to pay for? From there, pragmatim is key.
Our ambition remains unchanged, offering smart, affordable mobility for all. You may ask yourself, what are the key pillars for this plan? First, a clear move into electric mobility. By 2030, Dacia will launch four electric vehicles. Second, electrification across the entire lineup. Today, 1/4 of our sales are electrified. Tomorrow it will be 2/3 thanks to new full hybrid models and smart electrification. This year, we will launch a new A-segment electric model starting below EUR 18,000, made in Europe and developed in less than 16 months. Third, our C-segment offensive. Bigster is already a success and we will build on this momentum. Our ambition is to grow our C-segment share from 20% today to 1/3. Fourth, Sandero, a success story for nearly 20 years. Three generations.
For the next generation Sandero, we've designed a range of fully multi-energy powertrains with a typical, very attractive Dacia design. Of course, Dacia will remain the value for money champion for Sandero. That's Dacia promise, and we stand firmly behind it. Finally, we will continue to build on what makes Dacia distinctive, our affordable four by four expertise and our leadership in LPG solutions. Now to show you how exciting Dacia future is because images often speak louder than words. Let's take a look. Striker. Such a beautiful Dacia, isn't it? What defines Dacia is our ability to deliver the best value in every segment and with every technology. Believe me, this won't change. This is exactly the spirit behind Striker, our new electrified, unexpected, and dynamic crossover. Striker will spearhead Dacia's expansion into the C-segment. With Bigster, Striker forms a perfect complementary duo.
Two models, two distinct personalities sharing the same essential, robust, and value-driven DNA. 4.62 meters long, Striker brings a particularly compelling offer to the C-segment with a disruptive silhouette and aerodynamic qualities designed for optimal efficiency. Today, we are pleased to give you a first exclusive look to its exterior design, a true avant-première. The full official reveal will take place in June. Made in Turkey, Striker will be launched later this year with a full hybrid, a hybrid 4x4, and of course, an LPG version. With a starting price under EUR 25,000, Striker will contribute to make electrified C-segment mobility truly accessible. Striker will play a strategic role in attracting new customers for Dacia across both retail and fleet channels. Future ready? Dacia ready. Now please welcome Philippe Krief, CEO of Alpine, on stage.
Thank you, Katrin. Ladies and gentlemen, it's a real pleasure for me to be here to present the Alpine vision and ambition. Alpine has been it's a sports car brand of the group, and for 70 years it has been a synonym for lightness, high performance, and being proudly French. It's very natural to redefine the brand values around these assets. Lightness. This is about optimizing every gram for unique driving pleasure, agile, efficient, responsive. Exhilarating experience, pushing boundaries and setting new benchmarks for ultimate driving experience and performance. French savoir-faire, embodying excellence of materials and craftsmanship.
France is very famous for its premium brands in luxury segment, but we aim to be the first one in the automotive industry. We define our product range around three pillars with motorsport at our heart, all fully respecting the brand values and having a precise objective within the lineup. Firstly, everyday extraordinary. Here, Alpine A290 and A390 are key to our growth goals. Our ambition is to attract new customers to the Alpine family so everyone can enjoy pure sporty driving pleasure daily. Achieving 11,000 sales in 2025 demonstrate this intent, and we aim to double this in 2026 with a turnover over EUR 1 billion. Second, special project. Here it's focused on limited series model. Ultra-exclusive expression of our finest innovation, personalization, and design. The Alpine A110 R Ultime, the most extreme and exclusive Alpine A110 ever, is the perfect example.
There is icons, spearheaded by our reference model, the Alpine A110. The Alpine A110 is the foundation of our brand. Our core model showcasing our commitment to deliver high-technology products, keeping intact the spirit of the Berlinette. For the next generation Alpine A110, our objective is clear, to create the world's first true EV sports car and outperform the best of today's combustion engine rivals. We believe that the car based on the unique Alpine Performance Platform, APP, will make it. There's no better place than the Nordschleife to evaluate this ambition. Nicknamed the Green Hell, it is the reference circuit for testing with over 20 km of track and 73 corners. Thanks to reverse engineering, we have created a simulation model of the actual best two combustion rivals to perform a virtual race versus our own avatar car. Let's have a look.
How do we compete? Consider the main features used on the Alpine Performance Platform that address all the technical challenges of lightness, performance, design, and electrification. First, the frame. We have developed an advanced aluminum architecture offering lightness, stiffness, and modularity. That translates into structural integrity, dynamic responsiveness, and efficiency. Thanks to innovative bonded and rivet technology, the best possible lightweight design. To respect the A110's iconic shape, we added two battery packs rather than using a skateboard-style design like our competitors. To reduce weight and charging time, we opted for 800 V cell-to-pack batteries with high energy density cells. These packs allow to respect the 40%-60% front-rear weight balance of a true sports car.
For power and agility, we have a new rear dual e-motor four-in-one e-axle, delivering exceptional torque and performance with ultra-fast control thanks to its silicon carbide inverter. As a perfect chassis must sit in the heart of every Alpine, mechanically, we designed two new full aluminum suspension, plus a new integrated braking system and a premium class steering. Such a high-tech car needs a high-tech brain. Ours is called the Alpine Dynamic Module, ADM, and seamlessly integrate everything from the thermal management to the e-motors, including brake, steering, and active aerodynamics. For example, to achieve the extreme feeling of lightness with the next generation of Alpine Active Torque Vectoring, AATV. Every 10 ms, ADM can send a request of different torque between the right and the left wheel to create a yaw moment to enhance stability or agility, depending on the situation.
We have designed an incredible Formula One-inspired driving position, low slung with a vertical steering wheel. Besides the feeling, the feel-at-one sensation this gives to the driver, the cockpit is drawn to make all the important functions clearly visible and one touch away. Finally, APP is developed to offer different body styles, coupe, spider, 2+2 , all with no compromise. Before you ask, yes, the platform is designed to accommodate an internal combustion engine. I think it's time to go back to the race.
We won. Une fois n'est pas coutume, as you say in French. We'll keep our promise. The next generation Alpine A110 will be a real A110 and the first true EV sports car built around Alpine DNA. Thank you very much. Now, over to you, Fabrice.
Let's go from Nordschleife to customer experience. Customer experience is a key lever to face always fiercer competition from new entrants. Renault Group counts on strong foundations to make our brands distinctive. 80,000 trained professionals in our dealer network, 60% of leasing penetration for Renault brand new cars in Europe, around 15 points higher than the market average, and a complete ecosystem of charging solutions developed over more than 15 years of experience. All these assets support our ambition, make the difference by integrating the complete car life cycle first, second, and third life, generating value over time. OEMs have historically been focused on new car sales and aftersales. We underestimated a massive revenue pool on second and third life that we will now tap into. Let me give you some examples.
By increasing the leasing retake rate beyond the first life, we will improve customer loyalty and generate additional profit. The logic is the same for aftersales retention. Overall, our objective is to benefit from the second and third life revenue pools, targeting 80% of revenues generated during a 10-year car life cycle. Data, AI, and new technologies will accompany us in this strategic next step. We have already delivered a success story in our upstream activities, putting in place a digital twin of our production and supply chain ecosystem. We will now extend the experience to the downstream by establishing a digital twin for our cars, but also for our customers. Boosted by AI agents, we'll improve customer loyalty and retain vehicles in our ecosystem for up to 10 years. Our cars will interact with our customers in a highly personalized and conversational way.
It will offer advice through a virtual coach in the car or through the app, My Brand, My Renault, My Dacia. It will help with car usage, maintenance, and upgrades, safety, or even renewal conditions. The car itself, coupled with the smartphone app, will generate customer loyalty. We will also leverage digital and AI solutions to improve our competitiveness by reducing our total distribution costs. All in all, through customer experience, we will make the difference. Our objectives are clear. Keep our customer over 10 years with 80% loyalty rate, tapping into wide profit pools on second and third life. Improve also our competitiveness further, reducing by 20% our total distribution cost and, of course, be leader in customer satisfaction. Now, François, the floor is yours.
Thank you, Fabrice. As Katrin, Philippe, and Fabrice have shown, our product story is rich and exciting. To win, we must also compete with our best contenders, especially the Chinese car makers in terms of technologies. To be future ready, we have a detailed roadmap to match the pace. It covers everything that matters, from platform, battery, electrified powertrain, electronic architecture that will provide AI-driven intelligent cars to our customers. Now, let's join Philippe, our Chief Technology Officer, to discover our tech roadmap. Philippe, over to you.
Thank you, François. Hello, everyone. Let me guide you through an overview of the technologies we will be working on within the next four years with the benefit for the customers. Starting by the vehicle platform, we cover from A to C+ segment, with most of the investment already done for passenger cars. CMF-B for Clio, Captur, Sandero, Duster, et cetera, to our 2025 goal toward. AmpR Small for R5, including the GEA Medium shared with Geely for our global overseas market. We are now focused on our brand new modular EV platform, R GEV Medium 2.0, succeeding to the 2024 Car of the Year RGEV Medium 1.0 for Scenic. We are also ready in LCVs.
From the small Kangoo Van to the large Master Van, including our brand new LGEV Medium Van for the Trafic E-Tech to be launched in 2026, and adding the new half-ton pickup for South America, we have one of the strongest LCV lineup coming on the market. Coming back to our brand new EV platform for passenger cars, let's watch a short video. A great platform. The RGEV Medium 2.0 will be a key asset to achieve best-in-class performances from 2028, a 40% cost reduction versus today generation. It will cover from B+ up to D vehicle segment, compatible with all low and high drive silhouettes, offering an attractive versatility and modularity.
Thanks to a best-in-class efficiency, we will reach up to 750 km WLTP range in EV and up to 1,400 km WLTP range in range extender, staying below 25 g CO2 WLTP. Rear-wheel drive and four-wheel drive version will be proposed from 275 up to 500 horsepower, including our well-known four-wheel steering system with less than 10 m turning radius. The battery energy integration will reach a top filling ratio of 70% thanks to the smart cell-to-body design, 20% less parts, compatible with prismatic, pouch, and blade cells. Those batteries will be repairable. Last but not least, this platform is ready for intelligent chassis, X-by-wire technologies, and active suspensions. Following the presentation of our cell-to-body concept, let's talk about the chemistry to get the full battery picture.
In terms of energy density, we'll continue to stick to two streams. First, the high-energy density stream for high-output power vehicles such as Alpine or extra long range version. Second, the affordable stream for small cars and normal range versions. From 2028, we'll even reach the extra long range with the affordable stream on our new RGEV Medium 2.0 platform, thanks to our smart energy integration. Believe me, this is a key lever in terms of cost reduction. We will increase the energy density from 10% up to 40% of both streams by 2030, increasing consistently the vehicle range without sacrificing the charging time.
AB vehicle segment will stay 400 V with up to 20-minute quick charge in 2030, while CD vehicle segment will switch to 800 V by 2028, achieving up to 10-minute quick charge in 2030. These performances are based on the viable European power network up to 450 kW by 2030. For all those new generation of batteries, we will secure a no thermal propagation statement. Now focusing on e-motors. Our strategy relies on two legs. First, for small vehicle focused on urban usage with low power output, our priority is cost and investment-wise, so we buy. For other vehicles running for extra long range, our priority is efficiency at the best cost, minimizing the energy of the battery. Based on our know-how and industrial assets, we make. Let me introduce now our new e-motor.
We are developing our third generation of EESM motor, which will be best in class in terms of efficiency on the highway at 93%. These 275-horsepower e-motor with front and rear wheel drive versions will be equipped with an innovative scalable seven-in-one power electronics based on an 800 V architecture. Both e-motor and seven-in-one power electronics will be designed and produced in-house, providing a 20% cost reduction with a 25% output power increase versus today's generation. About HEVs. Our strategy is simple. We intend to continue HEV beyond 2030, maintaining our CO2 leadership, extending our coverage below 150 horsepower and outside of Europe, while we will be reducing our system cost up to EUR 1,000 per powertrain. Regarding E/E architecture, our strategy relies on two streams.
First, the domain control concept for cost optimization already in most of our vehicles for cost competitiveness will be continuously improved. Second, the SDV centralized plus domain concept as a first step is opening a new era in terms of time to market, agility, and scalability. This is a pillar for the future. Let's deep dive the SDV concept. Our SDV is to be the first European SDV introduced in the market in 2026, and the first car OS Android-based in partnership with Google. It will allow us a quick feature expansion thanks to the scalability and the agility of SDV. 90% FOTA, reducing by two the time to market of new features.
This is the first step, since it allows to introduce AI more and more deeply into the software from apps to basic software, expanding the AI features at vehicle level and leading from SDV to AIDV. It opened the door to the intelligent car by controlling infotainment, ADAS, and chassis. Talking about intelligent car, we need to develop the corresponding technologies. This is the purpose of our Futurama program covering our innovation activities. Related to AIDV, we have started to investigate steering and braking-by-wire, active suspensions, ADAS level three, intelligent cockpit, and safety, so-called human first. On top of that, we investigate in-wheel motors for which we see a breakthrough in terms of vehicle packaging, and as already explained in Ampere, we are studying the cobalt-free cathode and the lithium metal anode leading to the solid-state battery.
As you see, ladies and gentlemen, our engineering ambition during this plan is to bring together the skills to develop the technologies and the competitiveness that will allow us to compete with the best OEMs, such as the Chinese. Thank you for your attention. You may have questions. I'm looking forward to answering them in a moment. François, floor is yours.
Philippe, nice setup. Thank you, Philippe. We talk about products. We launch 36 new models. We continue building on our three distinctive brands, our strongest asset. Our new frontier is about customer experience with our ambition to keep 80% of our customers during 10 years of product lifetime. We also reviewed our tech and innovation roadmap. You have seen our future-ready bets on the right technology to be game changer. Now, let's turn to operational excellence. Our industry is entering a tougher, faster, and more unpredictable cycle. To cope with this environment, we must be best in class on everything we can control. We must be focused on disciplined execution. It means improved quality, shorter development time, and stronger resilience for supply chain. It also means cost discipline will reduce variable cost by EUR 400 per vehicle per year on average.
As you will see, we'll also use data and AI at scale to boost our execution. Finally, we'll continue embedding ESG objective into each of our operations. Operational excellence is the engine of futuREady. It is how we turn strategy into execution. How we move from success story to success system. To tell you more about it, let me invite Thierry, our Chief Industry, Quality and Supply Chain Officer to join us. Let's start with the top priority among others, quality. Floor is yours, Thierry.
Thank you, François. If we take a step back, what is the first purpose of operational excellence? For us, it's about serving the customer. That is why at Renault Group, we are committed to deliver best-in-class quality and durability. Not just when customers first take the wheel, but every single day they own their car. With futuREady, Renault Group vehicles will rank among the best for quality on the market. How do we get there? By getting it right from day one, thanks to our improvement the last three years, we cut by half the number of customer claims. Leading us to the best reference in Europe, whereas in the same time, we managed to launch 24 models with a high level of technological breakthrough. Our plan now is to reduce once again by 50% the number of incidents in the next three years.
Second conditions for the remaining few incidents, we get it right by reacting fast. We will be able to evaluate any issue for our customer in the blink of an eye. We had already initiated a major shift by reducing the timeline from 30 days to just one. Tomorrow, thanks to AI and remote diagnosis, we will be able to analyze any defect in less than 30- seconds, and often be able to directly fix it over the air. Third, quality obviously means long-lasting promise. Our cars are built to last. Our ambition is clear to reduce incident rates by 70% within the first five years of vehicle use. We aim to deliver such a level of reliability and durability that our customer can confidently say, after five years, "My car is brand new." The question is now, how will we achieve this?
The answer lies in pushing even further in our use of new technologies and AI from the components that make the car to the end customer. Inspired by aerospace standards, every critical part will be individually traceable to ensure maximum reliability. In our manufacturing plants, we will be scaling up AI-powered inspection systems so that 100% of all critical operations are automatically monitored. That is to say, more than 1,000 AI devices on each production line. We will also keep expanding connecting equipment across all facilities, allowing every plant to visualize and manage its process in real time. At the end of the chain, real-time monitoring and over-the-air technology will enable us to detect, repair, and update vehicles remotely. Delivering seamless services to our customers without any need for dealership intervention. To achieve operational excellence, we must also excel in manufacturing.
To do so, we rely on cutting-edge factories. We are already at the highest standard of our industry, and with futuREady, we will push even further. With Renault 5, we redesigned our processes to hit a 10-hour production time. Now we will go further. Our goal is to cut production hours per unit by another 30%. A real breakthrough. To achieve it, our plan is, first, cut the average number of parts per vehicle by 30% compared to the previous cycle, thanks to our teamwork with product engineering. Second, we will speed up our next-gen automation plan. In particular, we will deploy 350 humanoid robots in our plants by next year. Thanks to our collaboration with the startup Wandercraft, at Renault Group, the future is being written right now.
Third part of our plan, we will further capitalize on having digital operation across all factories, generating more than 5 billion data points each day. We will deploy advanced digital and AI system to deliver game-changing result. For example, predictive maintenance will reduce downtime by 50%. Just imagine the productivity and cost savings. Finally, we will deliver best-in-class energy efficiency with a target once again to reduce plant energy use by 25%. That is to say, close to 50% since 2020. With this approach to manufacturing, we are confident we will cut production cost per unit by 20%. Ready to deliver? It's time for me to share with you a real and effective example. I am proud, behind me, to introduce Calvin. He's the first model of a next-generation robot developed through our partnership with Wandercraft. As you can see, future is now.
This video was filmed last week in our Douai plant. Calvin is already operational on the tire handling line, feeding the assembly line, one of the most physically demanding station in terms of ergonomics. This is an industry first. He can move heavy loads while maintaining perfect balance. He can make decisions, understand his environment, and navigate autonomously. It's only the beginning. 350 robots like Calvin will be deployed across our production line within the next 18 months. Anyway, no matter the technology, no matter the breakthrough we implement, to ensure that our plan is realistic, we need to build it for today's world, fragmented and unstable. No matter the shocks, we need to be ready and resilient. We will de-risk our supplier base with targeted dual sourcing for strategic components.
We will also put high reactivity at the core of our supply chain model. With our digital control tower, powered by real-time data and AI monitoring, we have a 360-degree view of our entire networks, down to the supplier of our suppliers. That is to say, more than 50,000 sites in the world. Second, our supply chain will match our international strategy. As we expand outside Europe, overseas flow will grow through our global hubs. More than ever, speed and agility will be key to ensure business continuity. With futuREady, we are building exactly that. First, we optimize global flows. With AI-powered planning, our control tower will gain real visibility over 100% of our inbound and outbound flows and sharper forecasting. Right time, right place for parts and vehicle delivery. We get ready to react.
Agility to adapt to demand swings, handle supply disruptions, and shorten lead times will allow us to cut inventory by EUR 1 billion. Overall, the goal is to reduce logistics costs by 30%, bringing them back to pre-COVID level. Our customers, as a daily obsession, want supply chain and manufacturing systems as a world-class reference for cost efficiency and resilience. That is what I think we can call operational excellence. François, back to you.
Thank you. Thank you, Thierry. As a proof of concept, our new Twingo was developed in less than two years thanks to our Advanced China Development Centre, ACDC. Now that we know how the recipe works, it's time to scale it up. First, by working faster, at least 30% faster. With our full virtual twin of vehicle data, we can leverage AI to support our engineers from parts design to software coding. Second, by working smarter, we'll cut complexity with fewer parts thanks to the standardization of platform and technologies Philippe presented earlier. Together with our suppliers, we are building off-the-shelf modules ready to plug into any program. 30% fewer parts means less development, faster launches, and as Thierry just explained, stronger manufacturing performance. Finally, we'll reach our two-year standard by working leaner. With a simpler organization, we lower the cost per hour worked across the company.
More in-house mastery, less silos, and optimize R&D footprint. That is why right after my appointment, I launched a new One Engineering setup. This new organization will help us cut entry ticket costs by up to 40%, reduce COGS by 10%-30% compared with previous projects. With futuREady, we keep our ESG targets, achieving net zero in Europe by 2040 and globally by 2050. Moreover, we have deeply embedded ESG in our operation as a way to improve performance. For instance, we will reach 30% recycled content per car. Our commitment to sustainability goes beyond ESG. It also means contributing to the local communities in every country where we operate. That is why we are proud to be an engaged company, deeply rooted in each territory where we are present.
As an example, I am happy to share that the transformation of our Flins plant towards circular economy is perfectly on track. Just like the upskilling of our electricity hub in France to adapt to EV value chain. Lastly, our business unit, The Future Is NEUTRAL, aims to become the number one player in Europe for circular economy with a double-digit operating margin. All these actions will bring strong cost performance. On fixed costs, as I said, we'll lower entry ticket. We will also keep SG&A expenses flat over the midterm. We'll do it by streamlining processes across the company and delivering regular productivity. All in all, these actions will hold our yearly cash fixed costs flat over the midterm, allowing a cautious break-even point. This discipline give us the fuel to invest more, and it protect us by absorbing shocks in an uncertain environment.
Now, let's move to the fourth and final pillar of our vision, engaging toward our stakeholders. We will not build futuREady alone. For 127 years, Renault Group has made the difference thanks to our people and thanks to our stakeholders. That has not changed. We believe that working alone is not just risky, it is a sure way to fail. Now let me walk you through how we engage with each of our stakeholders. Let's start with what matters most, our employees. Our ambition is clear. Make sure that our 100,000 employees are better informed, better supported, and better recognized. First, better informed. It means transparency and trust. We'll reinforce dialogue with employee representatives and involve employees in every transformation of the group. Second, better supported. It means making our employees ready for a fast-changing industry.
We will invest in reskilling and upskilling to address technological disruption and ensure long-term employability. To enhance our expertise, we'll set structured professional pathways. Third, better recognized means fairness and clarity. We'll reinforce transparent performance assessment with both individual and collective, supported by our variable compensation scheme. We rely also on our 9,000 managers community to make futuREady a success. One of my predecessor, Louis Schweitzer, used to say, "I believe in delegation in all and at all levels." I share that belief. I believe in delegation, and I believe also in accountability and exemplarity. I believe also managers have to be open through permanent scouting for excellence, both inside and outside the company. Employee engagement monitored regularly with external surveys will be our North Star to track the progress of our HR plans. Now, let's talk about our suppliers.
We'll not be future-ready if our suppliers are not ready, too. That is why we are making a clear shift from suppliers to real partners. What does that mean? First, we involve our suppliers much earlier in the development of our cars. We no longer specify everything in detail as we did in the past. We'll rely on suppliers to propose solution that can meet customer expectations, regulation, and cost targets. Second, we integrate key suppliers into our tech roadmaps and seek more business opportunities for each of them. Third, we require transparency on cost breakdowns and across the tier and value chain, so we can secure together productivity and supply chain resilience. That's how we turn our suppliers into real partners. Now, let's move downstream to talk about our partnership with our dealers. Today, we have one of the strongest network in the industry.
Over 9,000 sites, more than 80,000 people, and 30 million customer transactions every year. At Renault Group, unlike many competitors, we have always seen our dealers as a key enabler to attract and serve our customers, and this will not change. Together, we can deliver a new breakthrough, extended customer experience toward 10 years, as Fabrice explained earlier. Doing so, we assume it could represent a 50% increase in dealers' revenue beyond the first ownership cycle. We will also work with our dealers on fixed cost and efficiency. Over the past nine months during my visits everywhere, I have seen one clear priority. We need to simplify, to digitalize the way we work together with our dealers. That is a purpose of our software‑defined retail project. With SDR project, we expect the network to raise productivity and reduce its breakeven by minimum 20%.
Moving on now to our OEM partnerships. Thanks to more than 20 years in the alliance with Nissan and Mitsubishi Motors, we built a real savoir-faire in making partnerships work. It is one of our key assets. Let me be clear. futuREady is a standalone plan. We do not rely on anyone to deliver our growth. We do not rely on anyone to make our company sustainable. At the same time, we are happy to develop win-win partnerships. With futuREady, we will have 19 models and over 300,000 vehicles produced to five OEM partners by 2030. On our three key geographies, Europe, Asia, and South America. On partnership, I am guided by two principles. First, we will remain independent in Europe by developing our own key technology breakthroughs. Second, internationally, we are pragmatic.
We seek partnerships to accelerate our growth in fast-growing markets. Nissan is our historic and strategic partner. Over the past two years, we reshaped our alliance in favor of a relationship driven by operational projects and real business opportunities. It is already delivering. We are developing and producing six models for Nissan for the European market. Outside Europe, we leverage our strong ties in India. In our Chennai plant, we'll produce three new models for Nissan. As you can see, our alliance with Nissan is more active than ever. I am personally convinced that together with Ivan Espinosa and our joint teams, we will create new opportunities thanks to our strong technological and geographical complementarities. Another key stream of our strategy is a collaboration we have been building with Geely since 2021. It started in South Korea.
By joining forces, we were able to recover our operations there in one of the toughest markets. The key focus now is Brazil. It is a strategic market for Renault Group, and our partnership with Geely allows us to run an ambitious and shared offensive. Finally, we HORSE Powertrain, our joint venture with Geely and with Aramco. It is already a success, and it is becoming a global leader in powertrains, targeting EUR 15 billion in revenues and 5 million powertrains per year. This is the logic of our approach with Geely. Take the best from each side and turn it into a competitive edge. In Europe, our partnership are clear proof of our competitiveness and our ability to attract other OEMs. First, electric vehicle, Nissan, Mitsubishi Motors, and now Ford Motor Company have entrusted us with production of new model based on our AmpR Small platform.
Second proof of our ability to attract other OEMs, hybrid and light commercial vehicle. We produce two hybrid models for Mitsubishi Motors. Nissan is already using our platform for three European LCV models. Through Renault Trucks, we have strong ties with Volvo Group on the current Master, Trafic, and now on the next-generation full EV medium van. Outside Europe, partnerships enhance our growth. Let me just take one concrete example with Latin America. We'll accelerate, especially in Geely in Brazil. Geely can rely on our established ecosystem, and we can leverage Geely GEA platform, one of the most competitive platform in the Chinese market. We already started selling Geely cars in Brazil with amazing quick start, and in the second half of this year, we'll start localizing Geely products into Renault Geely do Brasil. This is a tangible proof of how we use partnership as real boosters.
They bring to Renault more agility, more scale, and more competitiveness worldwide. It is now time to conclude. Today, we presented our new midterm plan, futuREady. I would like to thank again all the teams involved across the company, as well as our board of directors for its constant support, especially our Chairman, Jean-Dominique Senard. As a new CEO, I do not see this role as just a position. I see it as a responsibility. Today, my responsibility is to make sure Renault Group is ready for whatever comes our way. That is exactly what futuREady is about. This plan is based on pragmatic optimism. We know where we come from, we know where we want to go, and we know how to get there. We have set a clear ambition to become the reference European OEM.
This means developing in Europe, producing in Europe a new generation of highly competitive cars and expand significantly outside Europe. We have a clear roadmap with clear targets. We will launch 36 new models by 2030. We will accelerate on technology and innovation, and we'll push operational excellence further by executing faster, raising quality, scaling AI across the group. With this plan, we choose long term over short term. What will make the difference is our ability to combine innovation and performance with robustness and resilience. This is how we turn a success story into a success system. We'll do it Renault way, as we have done for the past 127 years. By trusting our teams and building with our ecosystems and partners. This is not my vision, this is our vision. The future will not wait, and neither will we. Renault Group is futuREady.
Let's get the job done together. Thank you for your attendance. Now let's open the Q&A session.
Thank you, François. Hello, everyone. Valérie and I will be your moderators today for the Q&A session.
Yes. Just a quick word on how we will run things today to make it super smooth. We are going to start with question from the floor and beginning with two from the financial community. We will move to the press and alternate between both groups. Our colleague will be coming around with a microphone. Please wait for one to reach you.
No big surprise. Valérie will be the good cop, and I will be the bad cop. For the sake of the broadcast, would really appreciate if you could ask your question in English, if possible. Also, please stick to two questions each for now. We will do our best to come back to you later if you have more to ask. Finally, we have with people connected through Teams, and we'll make sure you can ask your questions. The first questions, we'll start with host number three. Michael, maybe if you can grab a mic.
Hi. Thanks. So Michael Foundoukidis, ODDO BHF. Two questions on my side. First one, you are targeting EUR 400 reduction in cost of goods sold per vehicle per year and 20% cut in production costs. Could you maybe help us understand where the key execution focus areas lie? When would you expect these initiatives to progressively translate into net P&L benefits across the different brands? Second question maybe on the Nissan stake. Could you share your current thinking on its potential evolution over the immediate midterm, and how a possible reduction might translate into shareholder returns? Thank you.
Thank you. Regarding cost, just we plan to have EUR 400 per year on average worldwide starting now. By the way, we already did in 2025. This start to deliver, and we plan to deliver on a regular basis. Maybe for the key levers, Thierry, Philippe, you want to illustrate our COGS key actions?
Okay. Maybe I can talk about industry. Actually, they told me, "Don't worry, you won't have any questions for you." I could suspect it was a trap. About industry, I tried to explain a little bit in my presentation. I will try to go into detail. What we are targeting to reduce 20% production cost and, as I said, to try to be resilient, we are targeting a 30% productivity, physical productivity. One of the key lever is the design to manufacturing.
We mentioned R5, and now we want to put at scale the smart design to manufacturing we were able to do for R5 or, for example, for Twingo, to be able to reduce by 30% the number of parts to assemble a car, and we are on track to do so. From operational excellence, a pure operational excellence point of view, automation will remain for sure a key accelerator of productivity for what we call people working on the line, the blue collar. For indirect, we are relying on our digital twin, which already allowed us to reduce by 25% the number of indirect in our plants in the last five years.
For energy, as I mentioned, we made already one big jump from 25%, and we aim to double these savings, thanks also to AI and our digital twin.
Philippe?
Maybe from engineering perspective, in fact, it's depending if you consider very short-term actions or midterm actions, I would say.
Short term, it's pretty simple. The part is existing, we cannot modify. The idea is to find a better cost structure by discussing with our suppliers. Mainly it's based on the resourcing activities. This is what we do. We already get a lot of benefits thanks to what we started one year ago. If you consider midterm, we have different levers. First, let's say we can maximize the potential to reuse existing parts, meaning on the shelf parts. Because then it helps you to minimize the investment. At the end, this is a benefit at a cost level. This is the first point. The second is, of course, we can consider design to cost, which is very important, and one of them is to minimize the number of parts.
This is what we are working commonly with Thierry, because this is very linked between engineering process manufacturing. For example, for very simple parts such as the bumpers, we have been already able to reduce the number of parts by 30%.
Thank you. Regarding the second question. Short term, the priority for Nissan is to focus on re-Nissan. As Renault, we are doing our best to help with some project like India. For the time being, my priority is to let Ivan Espinosa and the team of Nissan to recover satisfactory track record. For the midterm, everything is open. I think my job as CEO is to bring to the board all potential optionalities for shares in Nissan. As I told you from an operational standpoint, I personally think that once Nissan will start to be fully stabilized, I foresee probably more opportunities than what we imagined two or three years ago. This will be additional opportunities on futuREady.
Thank you, François. We'll go to number five. I see José Asumendi from JP Morgan raise his hand.
Thank you very much. José from J P Morgan over here. I wanted to explore a little bit more the growth opportunity for the business in the coming years, and if you could talk about the growth opportunity for Dacia and light commercial vehicles. Right now, how much is it of unit sales within the group? Which vehicles and what do you think will be the proportion of unit sales for these two brands or subsegments by the end of the plan? Question two, can you speak about, please, about Wandercraft, the partnership you have with them? I would love to understand a bit better these 350 humanoids across how many plants is it going to be deployed. Also very interested if you can help Wandercraft in scaling up the manufacturing of humanoids.
Obviously, would you be interested in, obviously, also maybe building humanoids for the defense sector if and when you will get the requirement from the French government? Thank you very much.
For the last point, the answer is no. We focus on our own business. LCV, Fabrice?
Yes. Well, LCV, as you know, is a key pillar for us, not only in terms of volumes, but also in terms of value and profitability. We have the chance within Renault Brand to have three kind of success stories, as I said before. Kangoo in small van, Trafic in mid van, Master in large van. We just renewed Master with success. There was a long transition phase to manage because we manage a lot of diversity. Now, Master is on the right trajectory with orders entering and share of market, as you could see in the last month, which are gaining speed and high.
What is interesting is that, we see that, when you look at the results of the three pillars, the level of electrification is, of course, not at the pace of, PC market, but is increasing. Is increasing because there is customer needs, fleet needs to deliver in the cities and so on. That's where the game is beginning interesting because we will launch in a few months now the new Trafic EV based on a new platform we developed with a high level of, software inside, with a new level of service. We think that, this will be also for us, a game changer towards this, electricity paths. The potential, as you can see, we are starting from more or less 10% of EV mix on LCV is huge.
We will do that with no U-turn systematically on this direction. What is also interesting on LCV is that LCV is not only a tool for Europe, but also a tool for international markets. If you take the example of Latin America, we are very well known, for instance, with LCV and especially Master. We are producing in Brazil, where we are doing almost half of the market. This is also a tool and a conquest tool for international markets. This was for LCV.
Katrin, for Dacia.
For Dacia and its path to electrification. We are on a trajectory to electrification. This year we have one electric car. In 2025, we had one electric car in our portfolio. The Spring, which was the most sold EV in the A- segment and had a plus of 53% versus the year before. This year we are adding a new vehicle, an EV in the same segment. Last year, we had 25% of our entire sales were electrified sales, electric, pure electric and hybrid. We will have, by the end of this year, a hybrid solution or electrified solution on every product that we sell.
We will go to four electric vehicles by 2030, and with this we will electrify by 66%, or we will be at 66% of electrification in 2030. We are really on the way to electrify our brand.
Thank you, Katrin. Thierry, tell us—
Yeah.
—more about your great humanoid robot.
About little bit more about Kelvin and his—
Kelvin.
—coming brothers. Yeah, I think you may know the story of Wandercraft. It in itself, it's a very nice story. Wandercraft is a company which is specialized in building autonomous exoskeleton for people having losing the use of their legs. It's really by chance a connection with in one Renault engineer brain that this kind of exoskeleton, totally autonomous, was a kind of robot and a robot able to carry heavy loads. Okay, that's the initial story. Starting to this point, it took only three months to make the first model. One key asset we have with this partnership is speed.
Now, talking about scaling up, I guess the first support we give to Wandercraft is that we are bringing use cases. We have currently more than 25 use cases. We plan to extend robots. You had the question, how in what plant do we aim to expand? We will start maybe by French plant because it's closer, so to do the experience. For sure the target is to expand them in our highly automated plants. Giving use cases, challenging them, because we have a very clear also very clear benchmark of what is going on, talking about humanoid robots.
In a second step, if it's necessary, for sure, we will be able to help them to manufacture and to support also the design to cost. Honestly, from now, it's more in a second step. Second step, talking about speed, can be in six months.
You know, José, a lot of companies like to use humanoids for nice show at CES. Thierry prefer to put directly the humanoid robots into the line, and I'm pretty sure we are the first one in the automotive industry putting Engage in our 60-second cycle. A humanoid robot for such tricky, complex, and diversified tasks. We start, but I see also a big potential.
Okay, thank you. I propose to move to number one.
Yes. Thanks. Renato Gargiulo, Intesa. My first question is a general one. You are talking about international markets as levers for future growth. Do you expect any potential impact in the medium term from the new free trade agreements with South America and India? The second question is a follow-up on light commercial vehicles. Are you still seeing high pricing pressure in the sector from competitors? How is your outlook for the total market, and given your new product range with Master, et cetera, how you expect to perform this year compared to the market? Thank you.
Yes. Regarding the first question, you are right, and it is why we decided to focus on targeted fast-growing and high-potential markets. Because when we go outside Europe, we go deeply in the value chain. We are in India. It's to be more than 90% localized. We have industrial footprints in India, in South America. As I mentioned by Fabrice earlier, we really see India because we have the chance to be full-fledged now there, and I appointed one dedicated CEO to manage all value chain. To manage our plan India for India, but also to use it to improve our global competitiveness because India is competitive. Regarding LCV, you want to share more, Fabrice?
Yeah. Regarding LCV, of course, we are monitoring the commercial pressure, and it's a reality in the market. This being said, we are looking tender after tender, and we don't lose so far our key accounts.
We have a long-standing relationship with them, and we are capable to adjust our competitiveness with them just in order to keep them loyal. That's not such a problem. On the contrary, we have a big potential on proximity fleet, which is a little on LCV, what the retail on PC is. It means very safe and value-oriented sales. With the lineup we have now, we are in a position to gain market share this year.
Okay, thank you. I think we'll go to number four.
Thank you. George Galliers from Goldman Sachs. I've got two sourcing questions. The first one, with respect to HORSE, could you elaborate on your key milestones and KPIs that you hope to achieve between now and 2030, and also elaborate on your dividend policy there? The second question, with respect to your futuREady plan, when we look at your Chinese supplier mix, especially in light of European localization laws, how do you expect that to shift between now and 2030? Thanks.
HORSE Powertrain, my first objective is, thanks HORSE Powertrain, to access to the most competitive hybrid solutions, everywhere. This progress is really good. You saw that we have a roadmap up to EUR 1000 cost reduction for our full hybrid E-Tech. This is already ongoing. I do not say that this is already in our P&L, but all the actions are ongoing in order to deliver this before 2030. HORSE Powertrain allow us to get access to any technology. For instance, if you consider what Philippe Brunet explained about our new EV platform, RGEV Medium 2.0, this is a pure EV platform, but we will also have some derivatives with range extender. This is coming from HORSE Powertrain.
Of course, Renault alone, it would have been much more difficult. Additional investment, lower volume. Thanks HORSE Powertrain, we access to everything. As far as dividends are concerned, in our agreement with Geely, especially with Aramco, because Aramco invested in the companies, there were two-year standstill for dividends. It will deliver significant dividends. Duncan, as from...
We can start from 2027.
2027. Regarding your second question, I do not expect huge changes in terms of European footprint because we use Chinese suppliers for some technologies we do not have in Europe, especially the battery. For this, as you may know, at Renault Group, we decided to localize. We have especially AESC Gigafactory in our plant in Douai, which is, I think, one of the most operational Gigafactory in Europe. We are satisfied because our supplier is delivering the volume, but also the performance we expect. We'll continue this way.
For the rest, as we mentioned during the presentation, the objective with our European supplier is to change the way we work in order to deliver in Europe the level of competitiveness, but also innovation and speed similar as the one that a Chinese producing maybe somewhere in Europe and all the parts coming from China would deliver in Europe. We will be as competitive. This is what we embedded in the plan. The question is not, "what is the risk? How will you manage?" We manage. It is in our plan. And it is what Philippe Brunet explained to you. Chinese supplier overall will represent something like 5% of our global footprint. But we are, of course, very happy to work with Chinese ecosystem.
I think we are probably one of the OEM capable to work with the Chinese ecosystem in this type of win-win and balanced way.
Thank you, François. I'm gonna get in trouble because we only had questions from financial analysts. We'll take a question from the teams. I think there is a CNN journalist from Turkey. Can you please open the floor to Mehmet Kantarci? Okay, we'll give it another round. Can some journalists please raise your hand so that we can take questions from the room? Okay, please, number one.
Hi, good morning. Noemi Navas from La Vanguardia from Spain. I would like to make two questions. First of all, how is the volume we can expect with this futuREady plan? How you have said that Renault as a brand is going to sell 2 million vehicles. What can we expect from Dacia and Alpine? And also, what can we expect from Spain? What are you thinking for our plans, as you have said some things in the results presentations two weeks before. What can we expect from this plan?
As you know, we never release a detailed volume. We explain steady mid-single-digit growth. With this, you can do your math. We intend to grow in Europe as well. Our plan is a growth plan, not only outside Europe, of course, but also in Europe. We plan to grow with 22 new models we will launch in Europe, and we plan also to grow in each segment where we operate and for all our brands. Regarding Spain, and I take care under control of Rica here, but Spain is a hugely important country for Renault Group. It's not only about sales, where our brands are doing super well. It's not only about manufacturing because we have huge manufacturing.
It's a 360 approach. I thank the Spanish team for having this overall approach, including energy, for instance. We have a strong supplier footprint in Spain and also a top level tier one suppliers, Spanish suppliers, and this will continue. But as I know your question behind, yes, of course. We plan to and we are preparing the localization of the new platform shown by Philippe Brunet, our RGEV Medium 2.0 in Spain and in Valencia especially because Valencia is our plant for a bigger car, and we have to renew now the C and D segment there. This is planned. This is embedded in the plan.
As you ask the question, I rely on all the team in Spain to find an agreement between unions and management in order to secure the minus 20% manufacturing cost set by Thierry. I met all the teams in Spain, in Valencia, in Valladolid. I was really impressed. It's really absolutely great plants at the best level of Renault in terms of efficiency. Now, locally, they have to find the way to control smartly the labor cost, the flexibility, allowing us to. Our motto is, we will show that we can continue to develop in Europe, produce in Europe with our ecosystem. Now we have to make things done.
In Valencia, this agreement between unions and management is something important. We need to reach quickly now in order to move forward, but I am confident.
Okay, thank you. We have a question from Chinese media, from by Teams. We'll try again. Please, could you open your mic and ask your question?
Okay.
Thank you.
Sorry. Couple two questions.
Yes, it's okay.
Since we have noticed that foreign car brands have different ways to survive here in China, and one is to join the price war with Chinese competitors. The other way is to focus on the export business like Hyundai and Kia. For Renault, you didn't choose any one of them, but to leverage the Chinese supply chain, the speed and talent advantage to develop products like Twingo, I think is a very good example for the cooperation. My question is that since you're not planning to return to China as an OEM, what kind of role the Chinese market and Chinese partners will play in your future strategy?
Will you develop more products here in China, to better compete with Chinese competitors like BYD outside China? That's my questions. Thank you.
Yes, thank you. You're right, we are not in the Chinese market. Our way to engage with China is quite innovative.
In this plan, we do not plan to come back into Chinese market, just to be super clear. Maybe, Philippe, as you are also ACDC Chief, you can explain the activity of ACDC and what you intend to develop there in the coming years.
As explained, we are not having a kind of operation in China, but ACDC remains very important to us. You may know that ACDC is not a big team, but this is part of our strategy because we want to have really the key people involved in ACDC and rely on strong partners in China, and this is what we have. This is the model we applied for the Twingo, and we were successful since we were able to develop Twingo in 22 months, which is a record for Renault. We intend to continue the activity in China. I would say we have mainly three kind of activities in China.
The first one is that as we did for Twingo, we will continue to develop some vehicles. This is what we are currently doing based on the RGEV platform, which is a platform shared with Geely. We will develop a vehicle for our global overseas market, and this is ongoing. This is part of the activity. The second kind of activity in ACDC is to leverage the Chinese ecosystem. We are doing some sourcing of parts, getting competitiveness, and contributing to the minus EUR 400 per vehicle and per year. This is the second activity.
The third activity, which is, to me, very important, is kind of a market intelligence to see the trend in terms of techno, but also in terms of best practice. This is not pure market intelligence, but this is a kind of a north stars for us. It shows where we should go and having some experiments with different key player in the Chinese ecosystem. All in all, this is the three main activities we are having in ACDC.
Okay. Thank you. We are going back to the room, and then we will take number three.
Yes. Hi, it's Henning from Barclays. Thanks for having us. Cars look great, if I may say so. I wanted to bring Duncan in perhaps. You obviously shared the midterm targets at the full year stage already. For me today was gonna be more about substantiating you know, the quite ambitious midterm targets and perhaps going a bit more granular into the underlying assumptions. Duncan, perhaps you can remind us what you're assuming in terms of underlying assumptions for the main moving parts, right, in the 5%-7%. If you could talk a bit about pricing.
I think it's clear that volume and mix are positive, and the way you also talked about it again today, savings, the EUR 400 per car translate to about EUR 1 billion. If you could talk about the other moving parts. What you assume in enrichment, what you assume in pricing in particular, and, you know, any other moving parts that would help us substantiate and perhaps add a little bit of credibility to that 5%-7% target. Thank you.
Duncan.
Thanks, Henning. Yes, we did release our midterm targets when we announced the financial results on February 19th. The idea of today was to go more into the how. I think, you know, operationally, you've got the people in front of you demonstrating what's constructed behind the plan. We also gave a plan which was over the midterm and a corridor, and it's in a very, you know, fast, volatile market. You're not gonna get us giving you a granular walk down year by year as maybe some people would like. We have obviously focused a lot today on the importance of cost and efficiency.
You know, making sure that we have fixed costs flat across the cycle while increasing the number of products that we're launching and the number of technologies I think Philippe zoomed into specifically. We're not going to grow or price our way to an EV ICE parity, so variable cost is the second key factor. I think, François, you talked a little bit about the supplier part side of things. We both got back into that. You know, Henning, we have growth in the plan, and it's not a hockey stick plan, so it's a plan that starts this year. We have support coming from partner business.
While you know, we've talked openly about this over time, you know, some people may look at it as being a dilution to margin, but in fact, we're not putting any more fixed costs into the business, yet we're leveraging our existing supplier base, leveraging the efficiency we have in production and purchasing for our suppliers. It's something which is ROCE enhancing, which is obviously the key fundamental point for us. We have a growth plan. We have variable cost reductions. You'll see our fixed costs stay flat in cash. Obviously, we have some increase in depreciation because maybe we've invested a bit too much in the past. The product plan is clear, the technology plan is clear. I think those are the key drivers.
You'll see our margins expand over time, and also increase in mass. That obviously drops down to the net result into earnings per share and our ability to gradually return to shareholders over time with an increasing dividend per share.
Okay, thank you. We'll try number two. I hope it is a journalist.
Thank you. Robert van Apeldoorn. I'm from Belgium, Trends-Tendances magazine. You talk about cost reduction per car, more efficiency, but you didn't talk about the headcount. Does it? Will it change? I read that Volkswagen Group want to reduce again the headcount in the next, in the following years. What is the situation for Renault, for the Renault Group?
You know, it is exactly the purpose of futuREady, is to always be ready for the future. It means to proceed transformation as early as possible in order to avoid to be in a situation with high tough restructuring. Yes, we are doing changes. Yes, we'll continue to do changes. Yes, we know what we have to do, and we share this transparently with our unions because it is a good way to proceed step by step the evolutions and avoid what you mentioned, sudden bigger cut in terms of work forces. This is our way, and this is the purpose of futuREady. In terms of staying in Europe, in terms of manufacturing, we stabilize our manufacturing footprint. There is no huge changes, if you see what I mean.
The visibility for each of our plants is reasonable for the years to come. We assume that we'll get some flexibility on CAFE in 2030. Otherwise, we would have to review our plan. Manufacturing side, it's good visibility. The main challenge for our group today is technology, engineering. Change our way to do cars. Develop cars within two years, and this completely change the paradigm. You generally have the question, but do you know how to do? Yes, we know, as explained especially by Philippe, and we did it with the Twingo, mostly developed in China. Now, the challenge is to do it in France, here, in the Technocentre, with super good engineers who used to develop cars five years, and now we have to move two years.
This, we have to do it with our European suppliers. Same, our European suppliers, they are capable to do two years in China. Same, we are in Europe with European engineers, and we have to change our way in order to do it. This is our ambition in Future Ready in terms of transition. It's why we speak about transparency to employees. I said before, better supported means to organize, structure enough in advance the reskilling, upskilling, what we call with Claire, our CHRO, workforce strategic planning. What is the workforce we need to have in 2030, and how we move our people to this what we want to be. This is permanent, constant, non-complacent changes in order to avoid to be in the situation you mentioned in your question.
Thank you, François. Also keep in mind that we did the production adjustment. We reduced our capacity by 1.2 million units compared to 2019. We don't face the same issues that some of our peers are struggling with these days. We'll take now question five from the room.
Andrea Cartapanis. Regarding Alpine, you quickly mentioned the APP platform can host an ICE engine as well. I wanted to ask if the future A110 is confirmed to be EV only, or if we will see an ICE version as well. More in general, which is your view and your plan about EVs, ICE or hybrids in the sports car segment, in which we see the EVs are struggling to convince the customers.
Philippe?
Yeah. The APP platform is EV native, and the new A110 will be electric. The thing is that if we want to be futuREady also in Alpine, we need to prepare the future. That's why we are positioning also.
The platform to receive an internal combustion engine. Doesn't mean that we are going to do it, but we need to be ready for. Concerning your second question, the most important thing in this segment is to offer a product which is excellent. You buy an A110 not because you need it, but because you want it. If you create with the product something which is exceptional for me, it doesn't matter if it is EV, hybrid or ICE. The last part of the answer is that if having an ICE will create us some opportunity for other markets, because today we are targeting France, Europe, but in the future, the growth of Alpine also will go through international. If there's opportunity to grow again with Alpine in other markets thanks to ICE, then we will make it.
Okay. Question number one. Yeah. I think also Harald.
Thank you for taking my question. Horst Schneider from Bank of America. First question is more short-term and is maybe for Duncan. When you gave your guidance for 2026, the Middle East conflict has not yet started. Since then, we have seen this oil price spike. We see that the Dacia sales are still weakening. I think February is down something like 30%, if I'm not wrong. Just want to get a feeling, can you give some reassuring comments maybe on the outlook for 2026 if the recent developments are all covered by your guidance? That's number one. Number two is when I look at your volume guidance, it, if I'm not wrong, it implies something like 4-5% sales CAGR. You consider taking market share.
In that context, what should we think in return then about the price mix? What is more important? Is the price mix more important or the volume more important? As a follow-up to that, for François, what you're seeing in that context about scale, how important is scale for Renault? What if the sales targets run below expectations? Does that increase the pressure for increasing scale in another way, maybe in terms of partnerships? Thank you.
I take the last question first. We have the scale. Our ambition is to be a reference OEM in Europe because we have the scale. We have the scale in Europe. We want to be a leader in Europe. We explain to you in detail today how we streamline our platform, our technologies, in order to be at the top level worldwide for all technologies that matters. We have the scale. Outside Europe, we also make choices. Big markets, fast-growing, and where we have also the scale. Our plan is a standalone plan. We do not rely on anyone. Regarding maybe 2026, and also about Middle East, I think it's good example after Duncan.
Thierry, if you can explain what we did to put a working team dedicated to check this, how we use AI, data, all what you explained during the presentation to the example of Middle East crisis in order to show that all of this is not a PowerPoint, huh? This exists already today. Duncan, first for 2026 short term.
For 2026, unless you want to start on those.
Yeah, please. Don't want to be late.
Okay. On EV. 2026, thanks, Horst. You said, you know, mid-single-digit growth is what we're looking at. You know, let's not forget that we'll start to consolidate RNAIPL in India as of January. You know, we actually did the transaction in August last year, so it was only partially impacting the second half of the year. You know, there's not just our European volumes. Maybe I will hand over to Katrin or to Fabrice to make some comments about short term. We don't want to focus on it too much. I think the start of the year was impacted by some logistical problems. In terms of order intake, things have been, as we said, just a few weeks ago, comfortably strong.
We've seen good start to order intake at the beginning of the year and nothing really impacting us short term. You said, you know, we don't assume a positive in pricing environment for 2026. That wasn't what we took into account. As you know, we had tighter regulations in Europe with Euro 6e-bis. We had a lot of equipment we also had to add into the range, which was not possible to price it onto the market. When you're talking about revenue growth, we have consolidation of new business in India. This is, you know, close to EUR 1 billion of revenue alone. We have partner growth. We also have the model dynamics. It's not a question of chasing market share.
The value for volume remains clearly in place. Do you want to—
Thierry. I think it's okay.
Because-
Thierry, to illustrate, Middle East.
Yeah.
Case as a way to do r esilience at scale.
François, I have to apologize. We did not fix the Middle East crisis. But anyway, we managed not to have significant consequences, I need to be a bit cautious because it's still going on. The first thing when we have this kind of big event during a weekend is finally where are the ships, and will they have the time to get a destination without a disruption? This kind of question is very simple, but to answer for 100% of a part delivery, it was very complex to be able to answer, I would say just maybe two years ago.
Now, on Sunday, you have the answer. The answer so far is that we have enough time to deviate the ships and that the fact that the Suez Canal is once again closed won't have any disruption consequences for us. Second question is a bit trickier, do we have supplier of supplier of supplier in the conflict area with a potential disruption area? Not today. Disruption from the crisis, not today, but in the coming weeks. For this kind of question is even more complex. Once again, thanks to our control tower, it's possible to answer. We have the answer. We did not have the answer in 24 hours.
We had the answer in three days, and we know that for some components, little components, we have to be a bit careful. So far, we are managing it.
Okay. We'll take the question from Pushkar. Pushkar, please open your mic.
Hello. Hello. Hi. I hope I'm audible.
Yes, loud and clear.
Yes. Thank you. So, my question, my first question is about the growth. This is something that Renault has also targeted in the past. I think it was the 2018 plan where you wanted to have double ex-Europe growth rate. For various reasons, that did not work out. What makes you confident that you can deliver that growth now in this plan? What has changed? As a sort of follow-up to that, this ex-Europe growth outside Europe, it is margin dilutive from what I understand. So how does it fit into that 5%-7% sort of, long-term or medium-term operating profit target? And then on the Chinese competition, you have articulated well what you want to do, to be competitive with them.
We see every month the Chinese brands gaining market share in Europe. What sort of a timeline can we think that when exactly the European brands can be at that level and compete with the Chinese on price, on content, so that you don't lose market share? Thank you.
Regarding growth, what has changed compared with, for instance, Renault contract 2019. First, we do not push volume. We work on value. Second, we have a clear brand organization and brand management, and we focus on our brands in order to deliver a clear services, products, emotion, desirability into the car we put in the market. Third, we strongly improved quality, and now our customers perceive this well. Fourth, we do not want to rush everywhere in the world. We target on some specific markets where growth is happening and where we have good chance to deliver our cars on a profitable basis. Fourth, we do not try also to target everyone.
For instance, in India, my objective is not to sell a car to all the Indian families. We will target based on our technologies, more medium upper families, which is a huge market in India. This is the way we intend to do and our value versus volume. This is very important because today we do not decide the volume. We decide the car, the way to serve the customer, and then we are happy to see that our customer likes our car, they take our car, our volume assumption is cautious, and we are on a virtuous circle to enhance our brand, our value, our residual values. This is what we intend to continue in this plan. Regarding Chinese competitors, I do not know how the other will do. I know what we are doing.
I said we will be as competitive as our Chinese competitors, starting by Europe. What is the timeframe? The timeframe is step by step, but is already starting today. You take the Twingo. This car is below EUR 20,000. Full car, you have Google inside, great features. Okay, I'm quite comfortable with this, huh. Very desirable car. A lot of emotion in the design. Top quality .
Let's see. I'm quite comfortable now. Of course, we have to proceed. The C platform explained by Philippe Brunet will be another step for us. As you could understand, we develop cars within two years, so you can imagine when those car will come. I don't know for my competitors, but for Renault, I think that we are futuREady.
Thank you, François. We'll take question number one. I see Harald and Thomas around.
Thanks for taking my question. It's Harald from Citigroup. You've covered a lot of ground today. Just from my side, can we just talk a little bit about the regulatory situation? IAA kind of interesting in the last week or so made in Europe. Do you have any expectations that that makes it a little bit more difficult for your Chinese competition, particularly in the fleet markets, once those rules come into play? Secondly, are you expecting any further regulatory change from the European Union? I know you're talking to them all the time. Then lastly, your EV strategy is obviously quite comprehensive. I'm assuming you're not assuming any further change in the CO2 framework in Europe. Is that correct?
Overall, the release of Madame von der Leyen end of December is a good one because you have the set menu. You know, I'm quite pragmatic, so it's not so difficult. Some flexibility in CAFE. This was embedded in the release. Now we expect something, and especially, regarding 2030. Regulation freeze. The problem today in Europe is the price of the car. Instead of putting 108 new regulation to the automotive industry, you freeze regulation during 10 years. Then as Renault, we put the 25% engineers working here. For regulation, we put them to decrease the price for the customers. I commit. So-called local content. I take this IAA release as a good sign that Europe is starting to move.
It looks very complex, so I'm not capable today to comment. Again, let's be very common sense. First, Renault, I assume, will be a European automaker. I assume. Second, if you say to China and our Chinese competitors that Europe should not be closed, and this is Renault recommendation, but the rules apply in Europe are the same that China did so successfully 20 years ago. I mean, you are welcome, but you have to invest in Europe, produce in Europe, use the supplier ecosystem, create jobs, put R&D. It will work. I'm reasonably optimistic. The most important for Renault today is to get concrete decisions in order to fully stabilize the European path.
Okay. Thank you. We will move to the other side of the room with number four.
Thank you. Philippe Houchois, Jefferies. I guess I was gonna ask this question about the IAA, and I trust in your sense, what is the probability that what we saw in that release is actually gonna come through and over what timeframe? Because it seems to me it's a lot of proposals, and then it's going to be dissected at OEM level, supplier level, country level, and what comes out of it could be in 2028 and a shadow of what the EU has been proposing. What's your feeling on this? In that case also, what's gonna happen between now and then?
Because it seems to me that what has been proposed by Brussels is almost like an opportunity for the Chinese to try to accelerate some of their investment in Europe before the rules change, and encouraged to have your views on that. Thank you.
My job is not to have feeling, and I have not the difficult task of Commissaire Séjourné. At Renault, we want to be ready for any scenario. First we have two legs. We have all the technology and the legitimacy for electric car, and we have a top technology for full hybrid. Those are the two legs. It is why Fabrice released that his target for Renault brand in Europe is 50% electric, 50% hybrid. As I mentioned before, I consider that as Renault, we should show our capability to be as competitive as our new Chinese competitors in Europe. This is the way we manage. For your question, I'm reasonably optimistic, but same as you, I do not know the timeline, but we are futuREady.
We are really ready to any possible scenario, and it is what we want to show you this morning.
We will take the number one.
Thomas, maybe.
No.
Hello. Manuel Florentín from El País from Spain. I would like to ask you about Dacia. Spain is a very important market for Dacia. I would like to know if it's in your plans make a Dacia car in Valladolid or Valencia in the next years. Thank you.
Well, Katrin, regarding Dacia, Spain as a important market for Dacia and regarding manufacturing, I let you decide if you answer or Thierry.
Okay. Yes, I can only confirm Spain is a very important market for Dacia. We are on this market the number two retail brand. We are still growing. We had a very good year 2025, and we are expecting to continue that success path. I'm not going to take the answer away from Thierry, but currently we have made our decisions when it comes to products that we want to launch. From my side, there are no news for Spain.
Okay. You didn't give me a lot of time to think about your question, but okay. I think what is very. Looking at our industrial system, one key asset we did not highlight today, but we had the opportunity to do it in different presentation, is the flexibility. We can really integrate a new vehicle with a very low investment cost, and that's why we are able, for example, in Douai, to welcome the new Micra or the new Eclipse on top of the former Renault models we have already. It's to say that deciding where we want to allocate a vehicle is finally one of the last decision we will take.
Mm-hmm.
Coming back to Dacia, we just launched an incredible lineup. This lineup has just been launched. Striker will be launched next year. Bigster has been launched last year. We have already the footprint for the current generation. For the next one, everything is open.
We'll take question number one. Thomas. Yeah.
Thank you. Good morning. It's Thomas from Kepler Cheuvreux. Two questions, please. The first one, on the Renault brand, in India and Brazil, the growth targets. Over the last 15 to 20 years, you've sold cars in these regions, but small cars like Kwid. I know you're aiming to sell bigger cars like Bridger, but also much bigger cars. You haven't talked much about the perception of the Renault brand and how you believe consumers are going to be convinced that they can trust you to buy a EUR 25,000 car versus a EUR 10,000 car in these countries where competition is quite intense, specifically in India. The second, sorry, I go back to Duncan. I understand it's a traded debt for us, finance matter.
Can you share with us, even if it's just a range as well, some indication about your pricing assumptions for Europe? Because as it's been said earlier, Chinese automakers have captured 10% of the market on average over the last three months. It coincides with the relative weakness of your registrations, probably because of logistics issue partly. It's a clear concern for investors, so we need to understand what you've assumed because clearly that will partly impact your profitability. I'd like as well, if it's possible, for Duncan to say a few words about CapEx and working capital. You've said EUR 1 billion inventory reduction. Can we have indications about what you expect overall for working capital and whether CapEx stays where it's been, goes up, goes down, knowing that it's up in 2026. Thank you.
Okay, we start with Renault brand in India and Brazil.
Yes, India, Brazil, a very interesting question because effectively we've been present for years in both countries. Of course, we sold small cars, as you say. We developed also quite intensively our brand. If you take Duster, for instance, in India, Duster is a brand by itself, and it's a brand because we've been the first SUV on the market. That's why this kind of new concept like Bridger, which is, by the way, smaller than a Duster but bigger from inside, and which will be supported by new technologies, multi-energy technology, will be a game changer in the market. It means we are not starting from scratch, neither in India nor in Brazil.
We are starting with a lot of customers who are driving Renault already in those countries. Of course, we do that starting with a very modest way because we know that our share of market is still very low.
On the contrary, the potential is huge, and our brand has a lot of potential. If I take the example of Brazil, we are doing already and we are selling already, cars on upper price segments like Boreal, which has just been launched a few months ago and which is doing a very good beginning of a career. If you want to extend a little more than both countries like India and Brazil, just take a look at Korea. We've never been in Korea on the D or the E segment, and Grand Koleos now one year ago and Filante now just a few weeks ago are working very well. It means nobody is forbidden for Renault. We have and we are in our historical place, and we have the good technology. Let's compete, let's fight. I think we have a good chance to make it happen.
Okay. Duncan, coming back to beginning of the year and the pressure by Chinese competitors in Europe in pricing.
I think said price mix and enrichment, we plan to be negative. We took an assumption of EUR 200 million negative. A few hundred million negative was built into there as raw materials were also negative. Maybe coming back to Henning's question earlier, we have obviously the strong cost reduction. Second point was on CapEx R&D. We look at CapEx R&D and supplier entry ticket as a whole, and that will remain under 8% of revenue across the plan. Thomas, you called out a question. In one of the slides, there was an inventory reduction. It's the EUR 1 billion is the average level of inventory throughout the year, okay? It's not that we're trying to eke working capital out of the plan.
The working capital assumption in the plan is a negative figure each year for a couple of hundred million euros. Despite the fact structurally it could grow, we've been very prudent, and the free cash flow is not generated from working capital in the plan.
Coming back to, because each time you ask a question about Chinese competitors, and yes, indeed, we value very much what they are doing, so we do not underestimate the strength of the best Chinese competitors. It is why in our futuREady plan, we intend to have the techno roadmap in order to be in the pace. We intend to continue to invest in products, and we think that we can do more desirable and more European native products. On downstream, with what we presented today, namely the strength of our brand management, the way we organize customer experience, the way we engage with our dealers, we think that downstream we can bring higher value in terms of residual value management.
We think we can bring a higher value than some of our competitors. Upstream, yes, true, we somehow catch up, but we are in the race and we will be at the level of the best in terms of innovation, cost, and speed. Downstream, I deeply think that we can bring a higher value. This is our way to manage.
Okay. Thank you, François. We will now go to number three.
Good morning. Christoph Laskawi from Deutsche Bank. Thank you for taking my question. I'd just like to ask on the cost savings per year per car that you target, the EUR 400 in your assumption for the midterm plan, how much of that do you pass on to the customer? You just highlighted that pricing obviously is part of the problem in Europe, and in 2026 we have certain headwinds, and you need the cost savings to offset part of that. Over the longer period, what's a good share to assume to be passed on? And could you comment on if that varies by brand and powertrain type? Thank you.
Do you think I will answer to all your questions? Maybe Duncan.
Do you think I want to answer all of them? I mean, obviously in the past we'd maybe benefited from, in a couple of years ago, supply issues across the market, so we were able to manage to maintain more of our variable cost savings than we were actually giving away in price. You can assume we've been prudent in this in the plan. Okay. You know, we're talking about EV-ICE parity over time. Cost reductions, obviously, you've seen demonstration on the ICE side of things, with up to EUR 1,000 on hybrids. You can assume the EV, with Philippe's presentation in terms of talking about technology and the difference of 40% between one series and the next is gonna be more than the average part of that.
I'd say that we've assumed that we will give away or give back in terms of value because that's what the market will require, 'cause cars have got too expensive, the savings that we are making. I don't think I'll go much further than that.
No, anyway, I will give you a few tips because when you will digest the detail of our presentation this morning, you saw Philippe showing that our new RGEV Medium 2.0 is -40% cost compared with previous generation. In the presentation, we said that thanks to our new standards, two years development, we intend to decrease the entry ticket by up to 40%. We also disclose that we'll decrease the COGS, the cost of our cars, 10%-30% compared with previous generations. We mentioned -20% for manufacturing, -30% for logistics. You see that each time we have a KPI, this is quite aggressive KPI, for sure double digits.
If you put all together, you see that we take very seriously the possible price tension that we may have in Europe and in the world. With what we know, what we see, especially in China, also in India, what we forecast in Europe compared with some other markets, we are future ready for this.
Okay. Thank you. The last question will be number three again.
Hi, I'm Marc Grosclaude, journalist in northern France for La Voix du Nord. Can you give me more details about the models you intend to produce in France and especially in your northern France factories?
Overall, in Renaulution plan, we gave a clear priority to France. Thanks to this, today, our manufacturing footprint is secured in France for all the plants. What we intend to do with futuREady in the next five years is to invest the same level of investment that what we invested in Renaulution. It's why to answer to your question, the visibility for our electrification hub is positive moving towards 2030. Overall, if you compare 2021, 2025, 2026, 2030, we'll produce in France +20%. This is super concrete. Of course, it is an assumption, depends on a lot of topics, but as you see, the strategy gives a clear positive visibility to our manufacturing footprint in France.
Thank you, François. This concludes our presentation today. Thank you for your attendance here with us and online. Of course, the team remains at your disposal should you have any questions. For those here in the room, the next event will be a buffet lunch just up the stairs. For the media roundtables, your press contacts will reach out to you and accompany you to the prepared room for that. Thanks a lot and enjoy your day.
Thank you.