Renault may be off the radar of many Australian buyers, but its local boss insists the brand won’t slash prices to shift the status quo.
Talks of budget-minded Renaults were sparked at the local launch for the new Duster small SUV, which is now the brand’s cheapest model and starts at $31,990 before on-roads. Despite cheaper segment competition, Renault Australia general manager Glen Sealey says the brand isn’t interested in the “bargain basement area”.
“If you look at how typically the market is spread out today, that SUV segment that we talked about with Duster, and how 30 per cent sits below $30,000 – that’s not us,” he told media at the Duster launch.
“We’re not in that bargain basement area, but with Duster, we’re not in that very premium end either, $40,000 to $45,000.
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“But we do have cars that sit there, which is Arkana, and we do have cars that sit above that, which is Megane E-Tech. So we’re never going to be in that bottom 30 per cent, so to speak, but we will be in the fat, or the spike, of the segment, and we will be in the premium part of the segment.
“And you will see that with all our products, whether it is the small SUV segment, whether it is the van segment, you will see that displayed all the way through.”
While unclear, that “bottom 30 per cent” likely encompasses many of Australia’s newest small SUVs – particularly from newer Chinese challenger brands. The cheapest of these is the Chery Tiggo 4, priced from $23,990 drive-away, followed by the GWM Haval Jolion and MG ZS, both priced from $26,990 drive-away.
There’s also the base Mahindra XUV3XO at $23,990 drive-away, another brand looking to put its stamp on the small SUV segment. Still, arguably the most direct rival to Renault’s Duster is the Suzuki Jimny, which costs $30,490 before on-roads in its base form.
“We always operate as a challenger brand, because our volume is relatively low compared to the market. So we always see ourselves as a challenger brand,” Mr Sealey added.
“But the reality of life is we are able to command – as long as the product’s good enough – a premium position within that segment.”
Mr Sealey’s statement that Renault is a challenger brand is certainly backed up by relatively low sales, with 2871 so far this year – 958 of which were passenger vehicles. For context, the Tiggo 4, Jolion, and ZS have each outsold that figure by more than 10 times.
Renault’s current best-seller isn’t a passenger vehicle; it’s the Master van with 1210 sales.
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