Renault has acknowledged that it is taking a close look at its EV pricing in an effort to stay competitive with Tesla.
Tesla has made multiple price cuts in key markets throughout 2023, most recently announcing price reductions in Germany, France, Singapore, and Israel. Speaking with reporters earlier this week, Renault Brand chief executive Fabrice Cambolive noted that sales of the all-electric Megane E-Tech are strong but said the carmaker does need to closely analyze prices.
“We will analyze country by country, market by market, which level of competitiveness we need to have to stay in the game,” Cambolive said. “It’s clear that (Tesla cutting prices) is a challenge, starting with the cost side of things. It’s a warning that we are looking at.”
Read: Special Renault Megane E-Tech Remembers The Iconic Clio Williams
The Megane E-Tech has enjoyed a strong start to 2023 in France, shifting a total of 3,570 units in the first quarter. This placed it slightly ahead of the 3,158 Tesla Model 3s sold but well behind the Tesla Model Y with sales of 9,364. Recent price cuts made by Tesla in France mean the Model 3 now slightly undercuts the Megane E-Tech, starting at €41,990 ($45,913) compared to the €42,000 ($45,924) of the Renault.
As a whole, Renault’s sales climbed 9% in the first quarter of this year. This suggests the carmaker’s strategy to focus on its most profitable models could be paying dividends and comes after sales declined by 9.4% in 2022.
Reuters notes that Renault’s early entrance into the EV space has helped it. In fact, it was the third best-selling brand of EVs in Europe last year behind only Tesla and Volkswagen. What’s more, it was the third best-selling brand in the electrified segment behind Toyota and Tesla.
