Updated on Monday, September 13, 2021 – 12:11
The Dacia CEO believes that offering too much content goes against his no-discount pricing policy.
Denis Le Vot, CEO of Dacia, next to the Jogger, the brand’s next model with up to 7 seats Dacia Spring The cheapest electric, but with small print Sales The Sandero dethrons the VW Golf in Europe
Launched in 2005 as a low cost brand for emerging markets, Dacia has ended up being one of the great strongholds of the Renault Group throughout Europe. Suffice it to say that during the first quarter of 2021, more than 191,000 cars were sold on the Old Continent, compared to the 369,000 that Renault shipped. Although its biggest recent milestone has been to place the Sandero as the most successful car in July, surpassing the VW Golf, although it was already the best-selling passenger car for some time.
We have to cut with the low cost past, but Dacia has to remain Dacia, an essential brand that offers the content the customer is looking for. Not many more, because if we do that, we will die, assured Denis Le Vot, its CEO, in a meeting with journalists at the Munich Hall.
Furthermore, such a strategy would force them to change their closed pricing policy. Something that is not bice for most Sandero customers, for example, to take the most expensive versions, with an average price of 13,000 euros. Only 25% opt for the basic.
The issue of prices is nuclear in the strategy and, thus, Le Vot recognizes that the crisis in the supply of semiconductors and other raw materials is affecting them and will allow them to raise rates, but we have to be much more careful than others, since that we do not play with discounts.
Instead, they don’t give up on giving their cars a cooler touch. An ugly car design costs the same as a nice one, points out, and gives as an example the Jogger, his latest release and which appears in the photo. It is a seven-seater raised-body station wagon that replaces both the Lodgy and the Logan MCV and has been built on the CMF-B platform, the same one used by the Renault Captur or the Clio. That allows us to be very light, between 300 and 400 kilos more than a similar model, and offer it for less than 15,000 euros.
25,000 Spring orders
This car will be the first electrified Dacia in 2023. Not before, because today it is not essential for our client, whom we cannot force, nor will we offer diesel versions. Our diesel, and also our hybrid, is LPG, which allows reducing CO2 emissions by 10 grams per kilometer and has a future. In any case, Le Vot acknowledges that, by 2035, they will be able to count on all the technologies developed by the Renault Group. But at prices below what this technological evolution requires. Here it refers to Spring, their 100% electric car for which they already have 25,000 orders and that it competes in a segment, that of the smallest urban utility vehicles, that many brands are abandoning if it is not to offer a battery-powered alternative.
Dacia CEO says the keys to its business are in the adjusted contents, in the manufacture in countries such as Romania and Morocco and in having a simple range. Although this last aspect will take a giant leap when the Bigster (not before 2023). It is a larger SUV than the current Duster with which they will fully enter the C segment.
Our expansion will not be to other markets. The weight of segment C is so great that it would be like entering another country, says the manager. And while he admits that SUVs of that size will be harmed by the new Euro 7 emissions standard, believes that his rivals will have to be remarkably electrified, gain weight and become more expensive. That will make us even cheaper comparatively.
While that model arrives, the brand will be fertilizing the ground since 2022 with the modernization of its corporate image and commercial network to give continuity to the logo already released this year.
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