Renault has confirmed that it is working on a low-cost electric vehicle with an intended price of US $8000 (£6295).
The new model will be for the Chinese market and there are no plans to sell it in Europe at present.
Production dates have not been set, but a spokesman for Renault said production is very likely.
He added: “Renault is using its extensive EV know-how to develop an inexpensive electric model aimed at the rapidly expanding Chinese sector.”
EV global sales have grown from 50,000 in 2011 to more than 450,000 in 2015.
Carlos Ghosn, who heads the Renault-Nissan Alliance, said EVs are an important part of future plans: “Studies show EVs will account for two-thirds of all cars on the road by 2030 in the most densely populated, high income cities. The rapidly declining cost of batteries, improving driving range and an expanding charging infrastructure are all factors.
“We are at a turning point where EVs are becoming a viable option to more and more drivers. If we get it right, this could improve the quality of daily life for billions of people.”