Renault’s Dacia Will Not Add Minicar image

Renault CEO Carlos Tavares said that the Dacia brand will not get a minicar.

The minicar segment continues to increase in Europe as the economy in this region is still down and customers turn to cheaper, smaller vehicles. Still, Tavares said that he is satisfied with how Dacia range is now.

“What I want to avoid is to have too many cars,” he told Automotive News Europe. “We need to be communicating the brand rather than fragmenting our marketing dollars on too many models. Dacia’s brand awareness is still quite low.”

Various newspaper in Germany and France said that Dacia plans to manufacture minicar to compete with rivals such as VW Up and the Fiat Panda. A recent report in the AutoBild said that the automaker is expected to introduce a 5-door minicar in 2015, with a base price of around 5,000 euro. The vehicles will merge the Renault Twingo subcompact technical underpinnings with the design of the Dacia Sandero hatchback.

Dacia is Renault’s budget brand and its cheapest car is the Sandero with a base price of 6,990 euro in Germany. During the first four months of the year Dacia’s sales in Europe increased 18% to 90,000 units, compared with Germany’s market which fell 7%.