Renault is building its €17,900 Dacia Spring EV in Europe to qualify for local subsidies

Engadget ·

Renault's budget brand Dacia is moving production of its Spring electric city car from China to Slovenia, allowing it to qualify for French EV subsidies and cutting its effective price for buyers. The base model costs €17,900 (about $20,789), but this can fall to as little as €12,200 ($14,169) once French EV credits are applied, potentially making it Europe's cheapest EV after incentives. The switch also comes alongside a redesign, giving the previously utilitarian-looking car a more substantial, sportier appearance.

The new Spring will be built at Renault's Novo Mesto plant in Slovenia, alongside the Twingo E-Tech, and features a 27.5kWh LFP battery offering 155 miles of WLTP range, with 80 horsepower and 129 lb-ft of torque suited to city driving. It is slightly larger than before, with more boot space (up to 45.3 cubic feet with seats folded) and upgraded tech including a 10.1-inch touchscreen, though features like CarPlay and a rear camera cost extra. The Spring has sold 210,000 units globally since 2021 and is central to Renault's goal of an all-electrified European line-up by 2030, as EU rules require a 90% cut in fleet emissions by 2035.

In short

  • Dacia Spring EV production moves from China to Slovenia
  • Move qualifies it for French subsidies, cutting price to ~€12,200
  • Redesigned, roomier Spring aims to be Europe's cheapest EV

Steelman: both sides, in good faith

The strongest fair case each way — we don't pick a winner.

The case for

Building the Spring in Slovenia could make a small electric car affordable to more people while supporting European manufacturing and jobs. Supporters may see subsidies as a practical way to speed up cleaner transport, and the car’s modest range and city-focused design suit many urban journeys.

The case against

Critics may argue that public subsidies should not favour one car because its production has been relocated within Europe, especially when the benefits go mainly to buyers able to purchase a new vehicle. They may also question whether incentives deliver enough public value if the car’s short range and optional features limit its usefulness, and whether subsidy rules risk distorting competition between manufacturers.

Explained simply

Dacia is Renault’s budget car brand, and the Spring is its small electric car designed mainly for city journeys. Renault is a French carmaker with factories across Europe, including a plant in Novo Mesto, Slovenia.

France offers subsidies to reduce the cost of some electric cars, but eligibility depends on how they are made, including where production takes place. European carmakers are also adapting to EU rules that require large cuts in vehicle emissions over the coming years.

The Spring matters to Renault’s effort to sell more electric cars at lower prices. It also competes in a growing market where buyers weigh the upfront cost of an electric car against its range and running costs.

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