Dacia: Australian launch looking likely

UPDATE: Dacia boss outlines model plans for Australia

The Renault Group has now confirmed the Dacia brand will return to Australia in the coming months.

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August 22, 2021: Return for Dacia likely

Car buyers hunting for strong value will soon have another brand to consider, with Dacia set to join the Aussie marketplace early next year.

The budget-focused brand, which leapt into the global spotlight through a series of running jokes by Top Gear co-host James May, is aiming to launch locally with at least four models ranging from a small hatch through to light commercials.

All will major on value, with the Romanian-built Dacia Sandero expected to be the cheapest of the lot with a sticker price tipped to start below $20K.

While Aussie pricing is yet to be announced, the Sandero costs from £7995 in the UK, which equates to around A$14,600. If such a price is possible, it would see the Sandero significantly undercut the Kia Picanto to become one of Australia’s cheapest cars.

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An exact local line-up is yet to be confirmed, but early talk is that we will also see the Sandero Stepway crossover, Duster SUV and Oroch ute.

As you might expect, such bargain basement prices requires certain sacrifices. The most glaring concerns safety, with Dacia’s current line-up lacking many of the active safety systems that Aussie buyers now expect.

The Dacias also carry poor crash ratings, with the Duster SUV awarded just three stars by Euro NCAP in 2017. The newly released 2021 Sandero Stepway fared even worse under today’s more stringent testing critiera, only managing a
two-star safety score.

Don’t expect much in the way of cutting-edge equipment either, with the Sandero hatchback currently lacking touchscreen infotainment in cheaper models. But as MG’s success shows, there is clearly an appetite for budget-focused cars in Australia.

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Don’t expect much in the way of cutting-edge equipment. But as MG’s success shows, there is clearly an appetite for budget-focused cars in Australia.

Dacia will be imported into Australia through Ateco, which also handles other low-volume players such as Ram, Maserati and LDV, and will be positioned as a more affordable alternative to Renault (in a similar way to Skoda’s relationship with Volkswagen).

Ateco boss Neville Crichton told Carsales that Dacia offers a real opportunity in Australia. “It will happen. Absolutely. We’re talking to them right now about the details,” he said. “Dacia will fit below Renault.”

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Another piece of the puzzle that’s yet to be confirmed is whether Dacia will be sold through existing Renault dealers, or if it will follow an online model with fixed pricing. As for sales volumes? That’s even harder to predict, although one additional benefit Ateco will likely be hoping for is that Dacia’s arrival helps to rejuvenate some interest in an ailing Renault.

The French brand has been in steady decline in Australia for almost half a decade, with sales slipping by 40 per cent since the mid-2010s to just 6904 units in 2020. It’s a problem the brand’s local boss, Glen Sealey, is painfully aware of.

“The first thing we need to do is stem the decline and bring stability back,” he told Wheels.

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Given Renault already has a strong presence in vans, Sealey’s plan centres around strengthening the SUV line-up. The second-generation Captur small SUV has just launched Down Under and the Arkana crossover is also due to arrive later this year.

Yet even with a new-metal injection, it’s clear Renault is facing an uphill battle to turn its Aussie fortunes around. Currently its most popular model, the Koleos, remains a bit player that makes up less than one percent of the medium-SUV market.

Getting Renault models onto buyers’ consideration lists has to be a priority, although Sealey also pointed out high volumes aren’t the immediate goal.

“Levels of success are not always volume-based,” Sealey insists. “There’s a lot to be said for the quality of a business rather than the volume of the business.”

With Renault currently making up around half of one percent of Aussie sales, Dacia’s injection may help.