Home » Tesla price cuts are ‘a warning,’ Renault brand boss says

Tesla price cuts are ‘a warning,’ Renault brand boss says

PARIS — A wave of price cuts by Tesla is a “warning” for rival manufacturers of electric vehicles, said Fabrice Cambolive, the head of Renault brand.

The brand’s sales rose by 9 percent in the first quarter of the year, indicating a restructuring strategy focusing on the most profitable models may be starting to pay off after four years of declining revenues.

But Cambolive said Tesla’s price cuts would force the group to take a close look at its pricing policy worldwide.

“We will analyze country by country, market by market, which level of competitiveness we need to have to stay in the match,” he told reporters on Monday.

Cambolive said sales of the electric Megane, one of its most popular models, had risen sharply in March, with strong orders despite a very limited discounting policy.

The EV now costs as much as the Tesla Model 3, against which it competes. After last week’s price cut by Tesla, the Tesla Model 3 in France starts at 41,990 euros, compared with 42,000 euros for the Megane electric.

“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,” he said.

Renault brand’s global sales were 354,545 units in the first three months.

Renault will release sales data for the group, which also produces Dacia and Alpine cars, on Thursday, Renault group posted a 5.9 percent decline in sales in 2022, hit by the loss of the Russian market.

Sales for the Renault brand, which represents two-thirds of group sales, fell by 9.4 percent last year, also recording their fourth consecutive annual decline.