Dacia slows down on the domestic market

Sales of Dacia cars on the domestic market decreased by approximately 16% in the first four months of this year, from 39,309 units to 33,855 units, while production rose 16%, from 54,357 to 63,050 units.

Company officials stated that the decline in sales was due to fact that the company had ceased the production of the Solenza model last March, and in particular, to the creation of a horizon of expectation among customers, related to the approval of a new stage in the car fleet renewal programme.

“Last year”s sales of Dacia vehicles were largely due to the scrapping project initiated by the government,” stated Jean-Michel Sicre, commercial manager of Dacia.

Last year, the government earmarked resources for a car fleet renewal programme, stipulating any type of car older than 12 years should be turned over for scrapping in exchange for a sum of 3,000 RON, established as an advance payment for the purchase of a new car. Government officials have recently stated that a similar decision will be issued over the following months.

Whereas sales of Dacia were smaller on the domestic market, production has increased.

The Logan model has crossed the Romanian borders and has achieved sensational sales figures in France, which during January-October 2005 period ranked third in the top 10 countries where the Logan model is exported, after Turkey and Serbia.

“Old Logans sold at higher prices than the new ones in Paris because people were not willing to wait,” said Herve Bolot, the French ambassador to Bucharest.

In the first quarter of 2006, sales of Dacia Logan in France amounted to 5,842 units.

Solid demand from abroad made Dacia manufacture over 63,000 cars in the first four months of this year, 16% more than in the corresponding period of last year.

This rise in production was almost exclusively triggered by the Logan model, which came to account for almost 87% in the total volume, compared with less than 72% last year. In the first four months of last year, the Solenza model was also being produced and recorded an approximate share of 12% of overall production.

Utility vehicles also witnessed a slight decline, with only around 4,500 units produced in the first four months, three percentage points less than last year, accounting for 13% in the overall production.

Despite the fact that the first few months of the year brought decreasing sales on the domestic market, Dacia officials have upbeat expectations, in line with the trend of the car market as a whole.

“The Romanian car market is a viable development drive. I believe it will grow by 10% this year,” stated Constantin Stroe, deputy chairman of Dacia board.