Renault Aims to Overtake VW in Pricing

Renault SA's namesake brand surpassed French rivals Citroen and Peugeot in net pricing last year, COO Carlos Tavares tells Automotive News Europe.

Renault already garnered higher prices than Fiat, Ford and Opel, according to Tavares. He says the French marque's next goal is to attain better transaction prices than the Volkswagen make.

Tavares figures Renault pricing lagged VW by 11% in 2011 and 8% in 2012. This year he expects to narrow that gap to 5%-6%. Tavares doesn't specify when the brand might overtake VW.

Renault has boosted net pricing by resisting the temptation to use heavy incentives to increase volume in Europe's shrinking market, he says. Tavares acknowledges that the strategy contributed to the marque's 22% sales plunge in the region last year compared with an 8% drop in the car market.

He predicts Renault's pricing also will improve because of appealing models such as the next-generation Clio supermini and new Captur crossover vehicle and Zoe electric minicar.