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June 06, 2008

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Renault Logan, a worldwide sales phenomenon

  • Renault is pursuing its growth with Sandero, the latest model in the Logan family

  • Four years after launch, Logan has fulfilled all its promises. Worldwide, the Group has sold one million units of the car in its Logan, Logan MCV, Logan Van, Logan Pickup and Sandero versions.

  • The adventure continues with Sandero, a roomy and contemporary hatchback, launched in early-2008 in South America and from June 20 in Europe.

  • Romania, where Logan production began, is at the heart of Renault’s international ambitions. As it did with production, the Group has moved vehicle design closer to its customers, opening a regional engineering center and design center in Romania in 2007.

The Renault Group was one step ahead of the world vehicle market when it launched the Logan program in 2004. Designed and developed for full-markets, it significantly boosted Renault presence outside Europe and enabled the Group to enter new markets such as India and Iran. At the end of 2007, 35% of Group sales came from outside Europe, up from 22.8% in 2004. Logan platform vehicles have been launched in 59 countries over the last four years. Some of these markets, especially Russia, India, Iran and Brazil, have extremely high potential.

Logan has been successfully produced and sold in Russia since mid-2005. More than 150,000 units have been sold there, making it the best-selling import-brand saloon in the country. In Iran, despite a slower than expected start-up owing to industrial supply problems, Logan has since had a successful start, with more than 80,000 orders in the first week of launch in 2007. In India, one year after the order books opened, Logan leads its field (the C-segment) with total sales of 27,603 vehicles.

In Brazil, the Group has sold 37,220 units of Logan, launched a year ago, and Sandero, launched in February 2008. In April, the two models accounted for 67% of Renault Brasil sales, which have risen by 78.6% in the last year.

Logan rapidly achieved success outside initially targeted market segments. Its unbeatable value for money and positioning as one of the lowest priced mobility options around have made it phenomenally popular everywhere, including mature western European markets. The Dacia brand became one of France’s top tenselling brands earlier this year.

Worldwide demand

In Western Europe, where the vehicle ownership rate is 521 per 1,000 inhabitants*, the Dacia brand foresaw the needs of the market and was the first to reveal the demand for low-cost vehicles. Dacia is the smart option for people looking for a new, well put-together and roomy car at an unbeatable price.

In other markets, the Logan program has met its initial objectives of making it easier for the middle classes to own a car and enabling the Renault group to establish a position in growth economies.

- In Romania (183 vehicles per 1,000 inhabitants) and the Maghreb region (Morocco: 51/1,000 inhabitants), Dacia offers the burgeoning middle classes the possibility to buy a new, comparatively prestigious vehicle that provides more comfortable mobility and higher levels of safety and reliability, thereby raising living standards and making everyday life easier.

- In India (9/1,000), Brazil (107), Argentina (145), Colombia (33) and Iran (100), Logan has mainly appealed to the upper-middle classes replacing a previous vehicle.

* Source: Global Insight figures on vehicle ownership.

Photo: Renault

(June 5, 2008)

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