Renault Dacia sales surge 24% in first-half, production issues linger

Renault Dacia sales surge 24% in first-half, production issues linger

(Reuters) -Sales of Renault’s Dacia brand posted annual growth of 24.2% in the first six months of the year, the French carmaker’s low-cost unit said on Tuesday, underlining the importance of the affordable brand amid economic uncertainty.

Despite improvements, supply-chain issues are lingering, reducing Morocco production of the Dacia Sandero city car by 20,000 during the period, an executive said.

Dacia, which boasts best-sellers such as the Sandero and is expanding its range of electric vehicles (EVs), sold 345,432 vehicles between January and June, the Dacia unit said in a statement.

That compares to 277,885 units in the same period of 2022, which was heavily impacted by COVID-19 and component shortages.

Dacia’s four main models all recorded growth in the first six months of the year, with sales of the hybrid Jogger model growing by 130% and accounting for over one in four customer orders.

Sales of the Chinese-made Spring, one of the most affordable electric models on the French market, soared by 38%, while sales of the Sandero were up 24%.

Sales of EVs and hybrid cars have soared in the European Union in the last three years, boosted by government subsidies and corporate fleets looking for low- or zero-emission vehicle options.

Mortgage rates or unfavourable exchange rates have made demand weaker in many countries, but the brand can be an interesting alternative for more price sensitive customers, Dacia marketing, sales and operations director Xavier Martinet said in a call with journalists.

He also stated that, although the trend was improving, supply problems continued to hamper production.

“Maybe last year we were missing three parts on the car and now we’re only missing two. So, it’s improving, but does it make the situation better? I don’t know because we cannot still build all the cars we want to build,” he said.

(Reporting by Diana Mandiá; Editing by Conor Humphries)