Why Renault can’t lower the price of its electric Mégane E-Tech

If the price war launched by Tesla has caused many manufacturers of electric cars to react, we cannot really say that this is the case for Renault. The diamond firm remains totally indifferent to it and refuses to lower the prices of its Mégane E-Tech. But there’s a good reason for that, although the builder should beware.

Remember, it was last January. At that time, and after a rather difficult year despite a world sales record, Tesla decided to make an impressive price drop on its two star cars, the Model 3 and Model X. A drop of up to 13,000 euros, which allows them in particular to now be eligible for the ecological bonus. Immediate success for this radical operation.

Not at Renault

Which obviously attracted the covetousness of many manufacturers, who also decided to do the same. Nissan, Toyota, Xpeng or even Ford are among them. But some, on the other hand, have decided not to embark on this price war. This is for example the case of Renault, as he had confirmed in February. The brand’s boss explained that the battery cost was still too high and that there was little room for manoeuvre.

We remember that at the end of last year, the Mégane E-Tech had even undergone a sharp increase of up to 1,800 euros, as part of a simplification of its range. But a few months later, has the manufacturer changed its position on the subject of tariffs? Well no, still not. Indeed, and as explained by the journalists ofClean AutomotiveRenault has no intention of reviewing the price list of its compact.

And the reason is actually very simple and quite comprehensive: it is already selling very well. Indeed, the tricolor firm recently unveiled its half-year results, and these are generally good. The brand’s electric star was 23,000 copies sold in the first six months of the year, and 70% of customers have opted for the most high-end finishes. This enabled the brand to increase its margin, with 7.6% at group level and 6.2% for the automotive part. To be compared with the 3.3% over the year 2022! A price drop would be possible, but very dangerous financially.

In addition, 80% of the units sold were chosen with the most powerful engines. The manufacturer therefore has no reason to reduce the price of a car that is already working very well, while buyers are also choosing toopt for the most expensive versions. This explains why Renault had removed the entry-level variant (with the small 40 kWh battery) from its catalog last year.

A high price

However, it made its return last June, displaying a range of 300 kilometers according to the WLTP cycle, compared to around 470 kilometers for the version equipped with the large 60 kWh battery. At present, the electric compact starts from 38,000 euro in its cheapest version. A price that is still quite salty compared to the competition.

In comparison, the Tesla Model 3 is displayed from 41,990 euros, but it displays much higher technical characteristics. Among them, an autonomy announced at 510 kilometers in its standard Propulsion version, thanks to its 18-inch rims. We can also mention the MG4, available from 29,990 euros. Suffice to say that the choice is not difficult to make on paper.

This is probably why the American sedan remains well ahead of the French, with 3,966 copies sold in France in June, against 2,377 units for the Mégane. And if the diamond firm is satisfied with the sales figures of the latter, these have not necessarily been at the top in June, since the Mégane does not even appear in the European top 10. On the other hand, it should be wary of the MG 4, which is beginning to gain more and more importance with 2,511 sales over the same period.

The electric compact placed third on the podium with 6,310 units, just behind the Volkswagen ID.4 in Europe. Suffice to say that the Renault Mégane E-Tech should not rest too much on its laurels, because the competition is very tough. The diamond firm would however study its different markets, to see if it will be possible to adjust prices in order to remain competitive. In addition, it is working on the launch of its Renault 5 E-Tech, which should remain under 25,000 euros.

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