Renault RENA.PA is banking on new models and a price cut for its Mégane to help it in its fight against U.S. rival Tesla Inc TSLA.O on home soil, a senior official at the French automaker told Reuters on Wednesday.
“The main objective of the Renault brand in 2024 is to go on the offensive again in the electric segment, since we are currently second,” declared Ivan Segal, commercial director of the Renault brand for France.
A pioneer in the electric vehicle (EV) market alongside partner Nissan 7201.T in the past, Renault has been overtaken by new rivals.
While the French automaker sold nearly 18,000 electric Méganes last year in its home market, Tesla sold 25,000 Model 3s and more than 37,000 Model Ys, leading the French EV market, according to the data company AAA Data.
And the Chinese brand MG 600104.SS sold 20,000 MG4 vehicles in its first full year on the French market.
Renault’s counterattack includes the launch of the new electric Scenic and the arrival in the second half of the R5, two models intended to take over from the aging Zoe and Twingo.
Renault, which last year refrained from following Tesla’s price-cutting policy, also decided to reduce the starting price of its Megane by 10% in January, from 38,000 euros ($41,600) at 34,000 euros.
Taking into account the state bonuses which do not apply to buyers of the Model 3 and the MG4, the Mégane widens the gap with Tesla and is even slightly cheaper than its Chinese competitor.
“Competition in terms of price or leasing is stronger than a few months ago, and it will take a few more years for the electric vehicle market to stabilize,” Mr. Segal said.
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