Renault SA RNLSY is reportedly pinning its hopes on introducing new models and reducing prices for its Megane model as it seeks to compete with U.S. rival Tesla, Inc. TSLA in its domestic market.
"The Renault brand's main focus in 2024 is to go back on the offensive in the electric segment, since we're currently second," Renault brand's sales director for France Ivan Segal told Reuters.
Renault has opted to reduce the starting price of its Megane by 10% in January, lowering it from 38,000 euros ($41,600) to 34,000 euros ($37,200), Reuters added.
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Additionally, when factoring in state bonuses that are not applicable to buyers of the Model 3 and the MG4, the Megane not only widens the pricing gap with Tesla but also becomes slightly more affordable than its Chinese competitor.
Once a pioneer in the electric vehicle (EV) market, Renault, along with its alliance partner Nissan Motor Co., Ltd. NSANY, has seen itself eclipsed by emerging competitors.
In 2023, the French automaker sold approximately 18,000 electric Megane units in its home market, the report read.
In contrast, Tesla outperformed with sales of 25,000 Model 3s and over 37,000 Model Ys in France, establishing dominance in the French EV market, as reported by data firm AAA Data, which Reuters noted.
Renault's strategy to counter the competition involves launching the new electric Scenic and introducing the R5 in the latter half of the year, the report read. These models are intended to replace the aging Zoe and Twingo.
Price Action: RNLSY shares were trading lower by 1.2% to $7.74 at last check Thursday.
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