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Renault CEO says Tesla's price cuts are a "warning" for rival EV manufacturers as Renault sales rise

The CEO of Renault's flagship brand, Fabrice Cambolive, has warned that Tesla's recent wave of price cuts is a challenge for rival manufacturers of electric vehicles. Renault's restructuring strategy, which focuses on the most profitable models, may be starting to pay off as the brand's sales rose by 9% in the first quarter of the year. However, Cambolive said that 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," Cambolive told reporters. He added that sales of the Megane electrified model, one of its most popular models, had risen sharply in March, with strong orders despite a very limited discounting policy.

Renault's CEO Fabrice Cambolive

Tesla's price cuts could prove challenging for other automakers as the company's market share continues to grow. Cambolive said that the price cuts were a warning and that Renault would need to analyze its pricing policies to remain competitive in the market.

Renault's sales for the first quarter of the year were positive, with worldwide sales reaching 354,545 units. However, the whole group, which also produces Dacia and Alpine cars, posted a 5.9% decline in sales in 2022 due to the loss of the Russian market. Sales for the Renault brand, which represents two-thirds of group sales, fell by 9.4% last year, recording their fourth consecutive annual decline.

Renault's restructuring strategy has focused on increasing profitability by reducing the number of models it produces and concentrating on those that generate the most profits. The strategy appears to be working as the brand's sales rose in the first quarter of the year. However, Tesla's price cuts will likely challenge Renault's pricing policy, forcing the brand to reassess its competitiveness in the market. Renault will release group-wide sales data on Thursday.

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