Following a wave of price reductions by rival Tesla Inc., the French automaker Renault is revisiting its global pricing strategies for electric vehicles to guarantee it maintains its competitive position, a top executive announced on Monday.
After multiple price reductions in the US, Tesla reduced prices on Friday across Europe, including in Renault's home country, Israel, and Singapore, extending a global discounting campaign that started in China in January.
"We will analyse country by country, market by market, which level of competitiveness we need to have to stay in the game," Fabrice Cambolive, the chief executive of the Renault brand, told reporters.
Sales for the brand increased 9% in the first quarter of the year, suggesting that after four years of dwindling revenues, a reorganization plan focusing on the most lucrative models may be beginning to pay off.
However, Cambolive said that Tesla's pricing reductions served as a warning to rivals.
He said that despite having a very limited discounting policy, sales of Renault's Megane electrified model, one of its most popular models, increased significantly in March. But the model now has the same price as a comparable product from a rival.
Following Tesla's price reduction last week, the Tesla Model 3 starts at 41,990 euros in France, vs 42,000 euros for the Megane electric.
"It's clear that (Tesla cutting prices) is a challenge, starting with the cost side of things. It's a warning that we are looking at," Cambolive said.
In the first three months of the year, 354,545 automobiles were sold under the Renault brand worldwide, the business reported on Monday.
The loss of the Russian market contributed to a 5.9% fall in sales for the entire group, which also manufactures Dacia and Alpine vehicles and will reveal group-wide sales numbers on Thursday. The Renault brand's sales, which account for two-thirds of group sales, decreased 9.4% last year, marking their fourth annual loss.
The French company, which was impacted by the COVID-19 problem and a global chip shortage more severely than most of its competitors, is relying on higher-margin and electrified automobiles to increase profitability.
(Source:www.financialpost.com)
After multiple price reductions in the US, Tesla reduced prices on Friday across Europe, including in Renault's home country, Israel, and Singapore, extending a global discounting campaign that started in China in January.
"We will analyse country by country, market by market, which level of competitiveness we need to have to stay in the game," Fabrice Cambolive, the chief executive of the Renault brand, told reporters.
Sales for the brand increased 9% in the first quarter of the year, suggesting that after four years of dwindling revenues, a reorganization plan focusing on the most lucrative models may be beginning to pay off.
However, Cambolive said that Tesla's pricing reductions served as a warning to rivals.
He said that despite having a very limited discounting policy, sales of Renault's Megane electrified model, one of its most popular models, increased significantly in March. But the model now has the same price as a comparable product from a rival.
Following Tesla's price reduction last week, the Tesla Model 3 starts at 41,990 euros in France, vs 42,000 euros for the Megane electric.
"It's clear that (Tesla cutting prices) is a challenge, starting with the cost side of things. It's a warning that we are looking at," Cambolive said.
In the first three months of the year, 354,545 automobiles were sold under the Renault brand worldwide, the business reported on Monday.
The loss of the Russian market contributed to a 5.9% fall in sales for the entire group, which also manufactures Dacia and Alpine vehicles and will reveal group-wide sales numbers on Thursday. The Renault brand's sales, which account for two-thirds of group sales, decreased 9.4% last year, marking their fourth annual loss.
The French company, which was impacted by the COVID-19 problem and a global chip shortage more severely than most of its competitors, is relying on higher-margin and electrified automobiles to increase profitability.
(Source:www.financialpost.com)
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