Renault said on Monday it would review its international pricing policy for electric cars to ensure its competitiveness after rival Tesla cut prices several times in a row, Reuters reported.

After several price cuts in the United States, Tesla on Friday also announced a reduction in sales of electric vehicles sold in Europe, including France, Renault’s home market.

This was compounded by price cuts in the markets of Israel and Singapore, and the Elon Musk-led company expanded a generous discount program that began in January in China.

“We will do a country-by-country, market-by-market analysis of the level of competitiveness we will need to stay in the game,” Fabrice Cambolivet, chief executive of the Renault brand, said on Monday.

Renault’s sales rose 9% in the first quarter of the year, signaling that the automaker’s broad restructuring strategy to focus on its most profitable models is starting to pay off after four years of declining revenues.

Tesla Model 3 in France is cheaper than Renault Megan

Kamboliv also noted that sales also rose in April, but warned that the price cuts announced by Tesla were a wake-up call to reality, even if sales of the Renault Megane, one of the French brand’s most popular models, rose strongly in March. .

Following the latest price cut announced by Tesla, Musk’s Model 3 has arrived in France with a retail price of €41,990, €10 cheaper than the Renault Megane.

“Of course [tăierile de prețuri ale Tesla] is a challenge, starting with cost. This is a warning that we are considering,” Kamboliv said.

At a separate event in Paris, Hyundai Motor Group Chairman Luc Donkerwolke told reporters that the South Korean automaker will not engage in a price war and that Tesla’s latest moves reflect the Elon Musk-led company’s growing concern in the face of growing competition.

In the first 3 months of 2023, Tesla had the best quarter in its history in terms of deliveries.