In Romania, Dacia manages to sell merely 8% of its produced automobiles domestically.
Dacia, the Romanian subsidiary of the Renault Group, is heavily geared towards exporting its vehicle production, with only 8% remaining for the domestic market, Cristian Nevzoreanu, the company's executive director of Public Affairs, revealed at a specialized conference on May 26, as reported by Economedia.ro.
Nevzoreanu asserted that there is potential to further support the local automotive sector, citing the phenomenon of imported used cars. He claimed that for every new car sold in the country, three older cars are brought from abroad, with around 80% being over eight years old and potentially unfit for continued use.
Despite a slight decrease in the total number of vehicles produced, Dacia has been transitioning its production towards more complex, modern, and higher-value models. This shift aims to bolster profitability and decrease reliance on low-margin, outdated models, according to company officials.
In 2024, Dacia's plant saw a reduction of 4% in the production and sale of vehicles, from 322,071 in 2023 to 309,248. However, the factory produced 409,666 chassis, a figure that dropped by nearly 20,000 units compared to the previous year. These chassis were shipped to Renault plants across the globe.
A significant change in the plant's business operations came with the discontinuation of engine production activities through the Mechanical Plant, which were taken over by the new company, Horse Romania, in mid-2023.
Enrichment data suggest that Renault Group's broader strategy includes sustainability initiatives, such as eco-design, circular economy materials, and transitioning to carbon-neutral factories. These strategies, developed in partnership with key suppliers, may potentially be adapted to Romanian production in the future. Additionally, the Renault Group is planning to expand its corporate university model in Romania, aiming to develop local talent for advanced manufacturing and new technologies.
While not exclusive to Romania, these strategies demonstrate the company's commitment to innovation and future-proofing its operations. They also underscore the importance of policy measures to encourage the purchase of locally-produced new vehicles and address the influx of aging imports, as suggested by Renault Group officials.
In light of the discussion, it's crucial to consider how Dacia, with its shift towards more complex, higher-value models, could significantly contribute to the local finance and business industry, especially considering the potential impact on the domestic automotive sector. Furthermore, the Renault Group's broader strategies, such as sustainability initiatives and talent development programs, could potentially foster growth in both the Romanian finance and business industry, amidst efforts to combat the influx of aging imported cars.
