Renault positioning crisis

The latest pricing of key Renault models seems to indicate the brand is at a crossroads Down Under.

After Renault included free on-road costs with its $24,990 Megane Expression sedan this month, the once 'prestige' Renault model has effectively been positioned as a $22,000 entry in the small car segment. Although this has been a welcome move for dealers and buyers alike, it may have defined the 'crunch' point for the marque in Australia.

The current Megane series was first launched in 2004 with sedan at $30,000-plus. It has since been subject to a series of special deals and limited editions.

Can Renault continue to bubble along as a quaint French niche player bolstered by occasional cut-price clearances, or is it time for it to become a serious mainstream contender in the Australian market? This is the question on every Renault dealer's lips as they head towards a vital February meeting to discuss the local future of the marque.

Local Renault sales have stalled. Although the 2007 tally is up slightly over the 2006 total, the company's fortunes have not reflected the strong sales growth of the other Europeans such as Volkswagen and Peugeot.

What the raw figures don't reveal is that the 2007 Renault sales tally has been boosted by the acceptance of the new Grand Scenic wagon. Mainstream models such as the Megane and Laguna are struggling to hold their own; an issue that has become more pressing in the absence of a Clio II replacement.

How to position the coming all-new Laguna in the ultra-competitive medium segment in the face of new Mazda6, Honda Accord Euro and Ford Mondeo models is also on the agenda. Adding to the pressure on the local Renault push is the late-2007 arrival of Skoda to Australia.

When various Renault models outsell their European rivals on home turf, The Carsales Network has been told that it is a growing concern to local dealers that the company can't replicate its European sales success in the local market.

Although the unusual "bustle-back" styling of the Megane hatchback is seen as an obstacle in some quarters, the current Megane range has been well-received, especially the sports models. As a small car, it offers cabin space superior to several medium contenders with top-shelf safety and extra economy as a bonus.

Equally, the outgoing Laguna in its latest diesel-only specification offers a value-packed prestige package with a compact exterior and outstanding fuel economy as a bonus.

One of the main issues on the agenda for the February meeting is whether Renault's European sales pitch works for the more conservative Australian buyer.

As Volkswagen was forced to do in the past decade, Renault has also yet to close the image gap from when it was a high volume, low-priced locally-assembled small car to the more costly models now on offer.

Our tip is that Australia will see a revitalized and aggressive new Renault emerge from the February meeting, ready for the local company to exploit a number of sources for competitive new Renault models.

 » Get the best price on a new Renault

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