Dacia to Focus on Branding as Sales Stall

Renault SA’s low-price Dacia unit aims to build brand recognition this year as its sales growth stalls.

Francois Mariotte, Dacia’s commercial director, tells Automotive News Europe the effort will focus on moving beyond name recognition to create stronger consumer awareness of the unit’s product lineup.

Demand for Dacia's models grew strongly in the years following Europe’s austerity period. But sales have slowed as the region’s economy improves and consumers are more confident about moving upmarket. Last year Dacia sales rose 5% to 382,900 units in a market that expanded 9%. Mariotte expects the company's volume will be flat this year.

Earlier this year the unit unveiled mild updates to its aging Duster compact SUV, Logan wagon and Sandero small hatch.

Adding new models will be a major objective for Yves Caracatzanis, who takes over as Dacia’s CEO on April 4. The previous head of Renault production and supply chain in Eurasia succeeds Nicolas Maure, who was named earlier this month to head Russian Lada maker OAO AvtoVAZ.