Renault's CEO, Fabrice Cambolive, has cautioned other electric vehicle manufacturers to take heed of the latest Tesla price cuts.
Despite Renault's sales rising by 9% in the first quarter of the year, following a restructuring that prioritizes its most profitable models, Cambolive stated that the company would scrutinize its pricing policies worldwide in response to Tesla's actions.
He told reporters that Renault would analyze country by country, market by market, to determine what degree of performance Renault needs to have to remain in the competition, Reuters reported.
Fabrice Cambolive said that despite a very restricted pricing strategy, sales of the Megane electric vehicle, one of its most popular models, had increased significantly in March, per The Economic Times.
Tesla price cuts started on Friday, continuing a worldwide discount campaign in China in January, after lowering costs many times in the US, including in France, where Renault is headquartered. Tesla also cut prices in Israel and Singapore.
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Renault Sales Impacted By COVID-19, Russia-Ukraine War
Cambolive said that Renault's recovery continued into April but added that Tesla price cuts served as a wake-up call for rivals.
In the first three months of the year, 354,545 automobiles were sold under the Renault brand worldwide.
Renault's group-wide sales fell by 5.9% in 2022, primarily due to the loss of the Russian market following the conflict in Ukraine.
Sales for Renault, which represent two-thirds of the total, dropped by 9.4% last year, marking their fourth consecutive year of decline. Renault is banking on higher-margin cars to boost profits and plans to spin off and list its electric vehicle unit on the market this year, according to a report published by the Financial Post.
The COVID-19 pandemic and a global chip shortage hit Renault harder than its competitors. The company also manufactures Dacia and Alpine vehicles and is set to release group-wide sales data on Thursday.
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