Dacia sees rising compact car prices as chance for growth

A few years ago, most mainstream compact SUVs were priced at around €25,000, but the upcoming Euro 7 pollution regulations and GSR2 safety rules will push the price of a “C SUV up to €30,000 and even €40,000.” Let’s go,” he said. ” he said.

Dacia models such as the small SUV Duster, the battery-electric minicar Spring, and the small car Sandero have slashed their competitors by thousands of euros. Dacia says its design and cost ethos, combined with Renault’s off-the-shelf technology and low labor costs at its factories in Romania and Morocco, offer unrivaled “value for money”.

Base prices for Dacia models are very low, with Sandero starting around €11,000 in some markets, but the majority of customers opt for higher trim levels, Renault Group CEO Luca de Meo confirms. It has helped brands achieve margins of around 10%. De Meo has set a target of 15% profit margin by 2030. This is in line with current profit margins for premium brands such as Mercedes-Benz, which are much higher than the Renault brand.

As prices rise, whether as a result of regulation or inflation, some compact buyers are hesitant to pay that amount, and by 2027 or 2028 this segment, which includes two more vehicles I would consider Dacia’s products in

“This is where Dacia has assets,” he said. “We can continue to attract existing customers, as well as other mainstream brand customers who don’t want to pay more for a car.”

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