Europe's No. 1-selling EV isn't a Tesla or VW

Renault delivered quite the shock in its sales figures this week to anyone who had only paid attention to Tesla's stock chart.

The French automaker’s all-electric Zoe passed the Model 3 to become Europe’s best-selling full-electric vehicle in the first half.

The subcompact hatchback, which starts at 32,000 euros ($37,000), has come a long way from a day in 2009 when Carlos Ghosn, then the head of Renault, first unveiled a concept version at the Frankfurt auto show.

It was touted as the ideal second car for families and the dawn of the automaker's shift toward clean cars that would not add to climate change.

The Zoe started plodding along three years later. A couple of reboots and redesigns slowly raised its profile with consumers. Then, within the past year, something clicked.

The Zoe's first-half sales grew more than 50 percent during the first six month, according to figures from JATO Dynamics (see chart below), making it Europe's best-selling EV.

Renault also touted the Zoe's success in a news release.

The EV reached a record level of orders in June with nearly 11,000.

The four-door hatchback bested Tesla’s Model 3, Volkswagen’s electric version of the Golf and the battery-powered version of the mew Peugeot 208.

“It’s basically the same car that’s been around for a long time,” albeit with some improvements in range, technology and design, said Felipe Munoz, an analyst at JATO. “So, the latest success is a bit surprising.”

It’s not quite as astonishing when considering  the incentives now available to car buyers who are willing to go electric in France and Germany.

The French government is offering as much as 7,000 euros toward the purchase of an electric car, and a cash-for-clunkers program can add another 5,000 euros in subsidies. Germany is offering incentives of as much as 9,000 euros per vehicle.

But what about the car itself? Renault’s car-sharing service offers up a basic older model for test-driving around Paris to gauge comfort, maneuverability and range.

The motor is reactive -- almost too much so when trying to squeeze into a tight parking spot -- and provides more than enough acceleration for city driving, even when careening around the city’s notorious Arc de Triomphe roundabout.

The large touchscreen is loaded with tools that navigated through some busy neighborhoods in the French capital and mapped out charging stations.

The interior styling felt outmoded with a drab black color scheme, classic lines and a manual dial for temperature control. Space isn’t an issue -- it felt roomier than the exterior let on. While it would be a tight fit even for three small people in the back, it’s pretty comfortable up front for two. The seats can’t be adjusted for height and the shifter was a little clunky, but the ride was smooth.

When the Zoe was rebooted last year, reviewers found it to be similar to the outgoing version, albeit packing more range and power, better braking and a cosmetically improved interior. Speeding up and down a wide Parisian avenue, even the older model responded well to acceleration and sudden braking when a taxi abruptly cut in front of the car.

While the COVID-19 pandemic did for a time reduce traffic in the world’s densest cities, street congestion is building back up again. The Zoe works well in urban centers because of its narrow, boxy shape and maneuverability.

The Zoe’s jump in first-half European sales was the only bright spot in Renault’s otherwise-gloomy numbers. The carmaker, which is slashing costs, obtained a 5 billion-euro state-backed credit facility to make it through the coronavirus pandemic.

Renault will be making an even bigger impact in the growing EV market when the automaker launches two affordable models, Jean-Paul Drai, the company's product development director for EVs, said during the Automotive News Europe Congress Conversations on Thursday.

They models are the Renault Twingo Z.E. minicar, due later this year and the first battery-driven model from budget brand Dacia, the Spring small crossover, that is scheduled to arrive next year.

Competition has now arrived, with VW’s long-awaited ID3 starting sales in Europe this week at about 38,000 euros. And PSA Group is promoting two new electric models, the Peugeot e-208 and the Opel Corsa-e.

“The ID3 will be better from a technological point of view, closer to the Model 3,” said Bloomberg Intelligence auto analyst Michael Dean, predicting that the Zoe could fall behind.

Renault is more upbeat and feeling some degree of justification so many years after the car first hit the market.

“Our electric offensive is working very well,” said Denis le Vot, Renault’s head of sales and marketing, pointing to the new electric version of the Twingo city car coming on the market and plans for hybrid versions of existing larger models. “Renault’s lineup still holds lots of surprises for the second part of the year.”