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Dacia avoids price wars with Chinese competitors

Dacia avoids price wars with Chinese competitors
Dacia-Spring

Image: Dacia

Dacia does not plan to cut prices to compete with Chinese rivals. As CEO Katrin Adt recently stated in Automotive News, the parent company Renault is instead focusing on higher residual values, an established dealer network, and its European heritage. This approach comes as Chinese automakers such as MG, Geely, and Chery are introducing more affordable models.

In the past, Dacia models such as the compact car Sandero were significantly cheaper than their competitors. However, this price advantage has diminished or partially disappeared. One reason for this is Dacia’s slight shift away from a purely low-price strategy, while Chinese manufacturers are also closing the price gap internationally due to lower production costs.

The company management rejects discounts and incentives, as they could reduce residual values and increase the overall cost of vehicle ownership. “The best value for customers is more than just the price,” Katrin Adt said during a press event, according to the report. Nevertheless, the latest generation of the electric compact car Spring is offered at a low base price of 17,990 euros.

According to sales director Frank Marotte, additional differentiating features include models with optional all-wheel drive, such as the Striker, Duster, and Bigster. Additionally, combustion engines powered by LPG offer the possibility to further reduce operating costs.

In terms of electric mobility, Dacia now follows a strategy in which, after the new Sandero Hybrid, all models are also available as electric versions. The Spring is the first of four pure electric vehicles planned by 2030. For the Sandero, the Romanian brand will go forward offering both pure electric versions and hybrid systems.

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About the author

Thomas Langenbucher is an expert in electromobility with professional experience in the automotive industry and finance sector. Since 2011, he has been covering electric vehicles, sustainable technologies, and mobility solutions for ecomento.de. Learn more.

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