Renault SA has no intention of significantly cutting prices, the French car group’s chief financial officer Thierry Piton said on Thursday, after Tesla Inc’s decisions raised fears of a potential price war in the electric car market in Europe, MarketWatch reported, citing the newspaper. Agerpres.
Shares in European carmakers fell on Thursday after Tesla confirmed it would cut prices further. Shares in Renault fell 7.3%, while shares in Stellantis, Volkswagen AG, BMW AG and Mercedes-Benz Group AG fell around 2%.
Although Renault will continue to change prices and provide additional financial incentives, it does not feel pressure to lower them, Piton explained.
“The reality is that at the group level, factories are operating at full capacity. We are working at 100%, so there will be no serious incentives to lower prices and get involved in the spiral followed by some competitors,” added the financial director.
His comments came after Fabrice Cambolivet, chief executive of the Renault brand, said earlier this week that the French carmaker may have to cut prices on its electric range because of Tesla’s practices.
Renault’s CFO and the brand have different views on the price cut
“We will conduct an analysis of the level of competitiveness that we will need to stay in the game,” Kamboliv said on Monday, adding that “it is clear that [tăierile de prețuri ale Tesla] is a challenge, starting with the cost side.”
“This is a warning that we are considering,” Kamboliv assured.
Last week, Tesla announced price cuts in Europe: Musk’s Model 3 car will arrive in France with a retail price of €41,990, €10 cheaper than the Renault Megane, the French company’s electric sedan.
Bernstein analysts say Tesla’s drive to lower prices is increasing competition in the electric car market, with Renault, Stellantis and Volkswagen the most vulnerable. In 2022, Renault was the third best-selling electric car brand in Europe after Tesla and Volkswagen.
In the first three months of this year, Groupe Renault’s total revenue was 11.5 billion euros, up 29.9% on the same period last year, as it delivered 535,000 vehicles, up 14.1% year-on-year, after four years in a row. decline
Source: Hot News
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