Dacia, the Romanian car brand known for its affordable vehicles, is facing challenges as inflationary pressures drive up car prices across the industry. The current-generation Dacia Sandero, which was launched in 2020 as the cheapest car in Britain, now starts at £13,795, a significant increase in just three years. While Dacia’s cars are still competitively priced, the days of sub-£10k Sanderos are long gone. The brand is now expanding its range to compete in the European C-segment, which could see prices reach the £30,000s for range-topping models.

Xavier Martinet, Dacia’s sales and marketing boss, acknowledges that being the cheapest car brand is no longer sustainable. At higher price points, customers looking for basic, low-cost cars would opt for the used car market instead. Additionally, stricter pollution and safety regulations make it difficult to build a £9000 car and still turn a profit. Dacia must find a way to remain competitive and profitable while offering more value to customers.

To achieve this, Dacia aims to “enrich the car content” by adding features and accessories that enhance the ownership experience. This includes 4×4-style cladding, extra kit, new color options, and fun accessories like campervan-inspired Sleep Packs and sticker packages. While Dacia avoids costly electronics and gizmos required for a five-star Euro NCAP safety rating, it focuses on equipment that improves the overall value of its cars and brings them on par with competitors. As a result, over 70% of Dacia models are now specified with the top trim package.

However, the real challenge for Dacia lies in transitioning to a pure-electric lineup. The brand plans to introduce an electric version of the Sandero in four years’ time. While electric vehicles typically come with a higher price tag due to expensive battery hardware, Dacia remains committed to offering good-value motoring. CEO Denis Le Vot states that they will prioritize a cheaper price for customers, even if it means compromising on range and charging times. Dacia’s strategy of minimizing weight, equipment, and options, along with the potential use of cheaper sodium battery chemistry, allows them to deliver on this commitment.

In a market environment where car prices are soaring, Dacia’s focus on affordability becomes increasingly relative. However, the brand’s dedication to providing value for money sets it apart from competitors. Dacia understands that being the cheapest car brand is not a sustainable position and that offering more value and enriching the car content is essential for long-term success.

As Dacia expands its range and prepares for the transition to electric vehicles, it faces the challenge of maintaining profitability while meeting customer expectations. By finding innovative ways to enhance the ownership experience and remaining committed to affordability, Dacia aims to carve out a unique position in the market. While prices may continue to rise industry-wide, Dacia’s focus on value will continue to resonate with customers looking for reliable, budget-friendly transportation.

In conclusion, Dacia recognizes the need to adapt to changing market conditions and inflationary pressures. The days of being the cheapest car brand are behind them, but their commitment to affordability remains strong. By enriching the car content and offering more value to customers, Dacia aims to remain competitive and profitable in an increasingly challenging industry. As they prepare for the transition to electric vehicles, Dacia’s focus on affordability will continue to set them apart from their competitors.