how-dacia-is-doing-well-in-a-depressed-auto-market

How Dacia is doing well in a depressed auto market

On BFM Business, Denis Le Vot, CEO of the car manufacturer, explains that Dacia benefits in particular from inflation and longer waiting times among its competitors.

With increasing sales of 20% compared to last year, Dacia is clearly one of the exceptions in a depressed French automotive market and in low growth (3 to 4%). Obviously, the Renault subsidiary benefits from its positioning around low prices. But that’s not the only reason.

“The first thing is obviously the offer”, explains on the set of Good Morning Business, Denis Le Vot, Managing Director from the automaker. Remember that the Sandero is for example in France this year the car most sold to individuals .

“But the second phenomenon is inflation on costs and on rising car prices, “continues the managing director.

“The price of cars increases with the evolution of automotive standards. And we see, more and more customers who are turning away from the main manufacturers, who want to consume the automobile differently, who want not to put all their budget in their car and who turn to Dacia. In France, our order portfolio has doubled compared to last year “, underlines the manager. Another promising phenomenon for the brand: delivery times . As we know, the shortage of semiconductors weighs on production .

The cheapest electric car on the market

And while you sometimes have to wait until ‘in 10 months to receive his car with some manufacturers, this period is “three to four months depending on the model, which is unfortunate, but which is reasonable” at Dacia. Even if the group is indeed affected by this shortage, up to “between 12 and 20% of our potential volume in recent months “, the (relative) availability of vehicles remains a significant competitive advantage at the moment.

To continue its momentum, Dacia intends to rely on two axes: on one side the Spring , its entry-level electric car presented as the cheapest market (15 at 17. . euros) and on the other, the expansion of its offer towards medium cars .

On the electric, Denis Le Vot highlights “a different, innovative proposal and we have achieved electric mobility for all. We are able to sell it at a cost level that does not exist in Europe”. Between its launch in March and the end of November, Dacia recorded 40. 000 orders in Europe for Spring . According to AutoPlus , eight out of ten customers were not customers of the Romanian brand.

On the catalog side, the manager underlines that “the largest market is the C segment, the medium-sized car segment and our ambition is to repeat what we know how to do: seek the right choice, the right content , in 4/5 years. It’s the Bigster, replacing the Duster, we’re going to tackle larger cars. ”

While waiting for his arrival in the middle of the decade, Dacia begins to test this market with the new Jogger sold 15. . euros.

Olivier Chicheportiche BFM Business Journalist