Renault announces prudent strategy not to compete with Tesla for price supremacy

According to news on September 4, French automaker Renault announced in its latest strategic decision that it will not be involved in a price war with Tesla and Chinese competitors. Instead, Renault plans to better respond to competition by maintaining existing prices and optimizing fixed costs.

Gilles Le Borgne, Executive Vice President Renault Engineering Borgne said at the IAA Munich Motor Show that they firmly believe that the best strategy is to maintain current price levels and improve profitability by adjusting internal fixed costs. Borgne pointed out that in the current highly competitive market environment, price wars may lead to huge cost burdens, so Renault has chosen a more robust path.

According to the editor’s understanding, Renault’s strategic decision reflects their deep understanding of the current market situation and their understanding that price war may not be a long-term successful strategy. Therefore, they plan to carry out comprehensive optimization and improvements in multiple areas, including production, R&D and sales, to reduce costs and improve competitiveness.

Tesla and Chinese automakers are facing increasingly fierce competition in the global auto market. Not long ago, Tesla just lowered the prices of its models in the Chinese market, which attracted widespread attention. Despite this, Renault is sticking to its solid strategy and appears to be looking for a more durable advantage in its competition in the market. According to data from relevant agencies, the Renault-Nissan Alliance is currently among the top five large manufacturers in global automobile sales, second only to a few car companies such as Toyota, Volkswagen and Hyundai-Kia. Therefore, Renault's strategy and market trends will continue to attract attention.

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