Dacia Shifts Spring EV Production to Europe to Capture Incentives and Market Share
Dacia's Strategic Move in the European Electric Vehicle Market
By Gilles Guillaume
Introduction: Dacia's New Approach
PARIS, Sept 8 (Reuters) - Renault's low-cost brand Dacia is looking to make fresh inroads in the electric vehicle market with a new larger version of its popular Spring model — but this time it will be made in Europe, instead of imported from China.
Impact of French Subsidy Policies
Dacia has sold 210,000 Spring EVs since 2021 but has missed out on a recent EV boom in France, its biggest market, because the country's subsidy programme for low-income car buyers excludes Chinese-made EVs such as the current Spring.
Market Demand and Limitations
"What we have seen since April, is there is a mix of EVs across all segments that is growing significantly," Dacia vice president for sales and operations Frank Marotte told Reuters. "There is clearly much greater demand ... which is holding us back as we only have one electric model."
Production Shift to Europe
Built on the same platform as the Renault Twingo and a Nissan sister model at Renault's plant in Novo Mesto, Slovenia, the new Spring is 18 cm larger than its predecessor and has a more rugged design aimed at broadening its appeal.
Qualifying for European Incentives
Unlike the current model, it will qualify for subsidies reserved for vehicles made in Europe and avoid European Union tariffs on Chinese-made EVs.
Competitive Pricing Against Chinese Rivals
That should help Dacia keep pricing competitive as Chinese rivals step up their push into Europe's EV market.
Dacia's Market Performance and Future Plans
Dacia's sales fell in France in July and August as EVs reached record shares of new car registrations of 35% and 38%, boosted by higher fuel prices linked to the Iran war.
Through August, the Spring ranked only 55th among France's best-selling vehicles, trailing models such as Tesla's Model Y and the Renault 5 and Twingo.
Expanding the EV Lineup
After focusing on combustion-engine vehicles to maintain its position as one of Europe's most affordable brands, Dacia is launching more hybrid versions and plans to offer four EVs by 2030, starting with the new Spring, which will be priced from €17,900 ($20,821).
No-Frills Approach and Delivery Timeline
In keeping with Dacia's no-frills approach, the new Spring will be available in only four colours and two trims. Deliveries will begin in early 2027.
Additional Information
($1 = 0.8597 euros)
(Reporting Gilles Guillaume. Editing by Mark Potter)
