Renault wants customers to benefit from the group's production cost optimizations. However, it is out of the question for the French manufacturer to cut prices.
For Renault, Tesla is not really the example to follow for its pricing policy. If the American company has inspired many other manufacturers on technical elements, few historic manufacturers want to play the same game when it comes to the prices of electric cars.
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With the “Renaulution” started in 2021, the Renault group has had time to refine its pricing strategy to make it a solution where everyone comes out a winner. The group confirms this once again with good figures to be presented at its quarterly financial results conference on April 23.
According to Automotive News Europe, the financial director of the Renault group, Thierry Pieton, still provided some interesting details on the question of prices during this speech. He notably recalled that Renault does not want “ slash prices » electric cars.
Cost reduction applied to new products
Even if customers appreciate seeing prices fall, Renault prefers to display a certain stability in its prices. This is an important element for maintaining good residual value on marketed models. This valuation is important for the second life of models on the second-hand market, but also the definition of leasing offers from manufacturers.
Having prices that yo-yo over short periods of time is not really to the advantage of either the brands or the customers. This allows Tesla to play with supply and demand to fill its order books, but these incessant price changes are increasingly harmful to the image of the American manufacturer.
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Renault focuses more on a longer-term vision than on permanent adjustments in the very short term. The efforts are starting to pay off for the French manufacturer, which can quite proudly announce a notable reduction in its production costs: “ We have managed to significantly reduce costs — our new models offer a higher margin for us and a lower price for our customers. »
The optimization of these manufacturing costs will be used to offer new products at ever more attractive prices. Thus, Renault Scénic benefited from the experience and improvements acquired on Mégane. When Renault 5 and 4 will benefit from the gains obtained thanks to the previous vehicles.
A strategy already visible on the Renault Scénic, but what about Renault 5?
Renault is not really threatened by the recent price drop of Tesla's Model 3 to €39,990. Even if some experts do not place them in direct competition, they are naturally opposed on the French market. The Renault Mégane saw its price drop in January to benefit customers from cost optimization. The Mégane e-tech starts from €34,000 (before deduction of the bonus), but customers rather choose finishes flirting beyond €40,000.
Since its launch, the Renault Scénic has benefited from very competitive prices compared to Tesla. The Scénic is available from €39,990 (before deduction of the bonus). Even if customers will probably mainly gravitate towards the €46,990 version, the model is not disconnected from the market leader.
The question that remains unanswered is: will the Renault 5 create a pleasant surprise in terms of its price? Renault is eagerly awaited on the price of the new electric city car. We will have to wait several more weeks before the opening of marketing lifts the veil on what could make the switch between commercial success or a mixed start.