While a price war in Europe seems to be starting at the start of 2024 in Europe, the boss of Renault explained to Sud Radio why the reduction in prices for Mégane e-tech is part of a long-term strategy.
The price drop of almost €4,000 for the Renault Mégane e-tech may have appeared as a desperate move by Renault to align itself with the competition and boost sales. This is not the case, this was confirmed by the general director of Renault, Fabrice Cambolive, on Sud Radio on January 14.
“ The decline is not sudden » he specifies, also indicating that it was “ worked on several levers “. It corresponds well to the manufacturer’s long-term strategy, focused both on innovation and the accessibility of future electric cars.
The coincidence of the calendar
Asked about the date chosen to apply the new price, Fabrice Cambolive specified that the reduction was already in the pipeline well before all the other competitors launched the offensive at the start of 2024: “ Our objective was to find opportunities to reduce costs on our electric vehicles “, it’s done.
Since the interview with the boss of the Renault brand, Tesla has also lowered the price of its Model Y by €3,000, but this change should not necessarily penalize the French manufacturer which has now positioned the prices of its vehicles well. electrical. On the other hand, other competitors risk finding themselves more hampered by this competitor considered unpredictable.
Prices driven down to meet customer expectations
The entry-level version of the Mégane e-tech – with its 130 hp and its 40 kWh battery – at €34,000 (before deduction of the bonus) should make this category of electric car accessible by meeting customer needs.
Renault is using several levers to achieve its cost reduction objectives, which the brand’s boss presented as follows:
- Offer a slightly smaller battery size, but better suited to customer needs and the charging infrastructure in France, so as not to unnecessarily increase the model’s bill.
- Take advantage of the technological breakthrough, particularly in the composition of batteries, to reduce costs.
- Play the “made in France” card and recover from price reductions by increasing the volume of the range manufactured in French factories.
According to Fabrice Cambolive: “ manufacturing in France at a competitive price is possible », the new Scénic e-tech from €39,990 is proof of this. With a range that can reach up to 600 km while having a contained weight, the brand is sure to have aimed just to please the customer and meet their needs. In any case, this is one of the brand’s big new features to follow for 2024. The first deliveries will take place in the spring, before the Renault 5 which will arrive in the fall.
The choice to manufacture the batteries in France also pursues the same objective: “ The battery is a heavy element to transport and the different regulations for transporting them increase costs, so we want to favor the short circuit “. The proximity of the two factories in Douai facilitates the process, particularly for heavy elements such as batteries, in addition to providing a sustainable and ecological approach.
Social leasing as a lever for accessibility to electric cars
“ Social leasing is making the buzz » indicated the CEO of Renault in his interview. During the open days in January, Renault was able to observe significant demand for social leasing vehicles, with notable success for the Twingo model offered at €40/month.
If the boss of the Renault brand confirms that electric is no longer a niche market, he agrees that government aid has “ a significant leverage effect to convince certain customers “. Renault has nevertheless prepared for a fairly rapid end to bonuses (this is already the case in Germany), which is why the reduction in costs and therefore prices is also necessary to anticipate the future.
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