Renault Reduces The Price of The Megane EV by 10% To Compete With Tesla and MG.

The Price of The Renault Megane EV  has been reduced by 10% .

According to a top sales official, the Renault brand is counting on new models and a price decrease for its Megane E-Tech full-electric compact hatchback to help it compete with Tesla on its home territory.

“The Renault brand’s main focus in 2024 is to go back on the offensive in the electric segment, since we’re currently second,” Ivan Segal, Renault brand’s sales director for France, told Reuters.

Renault, which was a pioneer in the electric vehicle market alongside alliance member Nissan in the past, has been surpassed by new competitors.

According to AAA Data, although the French automaker sold almost 18,000 electric Meganes  in its home market last year, Tesla sold 25,000 Model 3s and more than 37,000 Model Ys, leading the French EV industry.

In its first full year on the French market, China’s MG brand sold 20,000 MG4 tiny hatchbacks.

The companies official response includes the introduction of the new electric Scenic, a compact SUV, and the arrival in the second half of the year of the R5, a tiny hatchback that will replace the outdated Zoe.

Renault, which resisted Tesla’s pricing cuts last year, has agreed to lower the beginning price of the Megane (with a 40-kilowatt-hour battery) by 10% in January, reducing from 38,000 euros ($41,600) to 34,000 euros before incentives.

With a 5,000-euro state EV bonus that does not apply to Model 3 and MG4 owners since they are built in China, the Megane closes the gap with Tesla and is even somewhat cheaper than the MG4.

The Megane also competes with Stellantis’ tiny EVs, the Peugeot 308 and Opel Astra, which were introduced last year, though they are slightly more expensive.

Volkswagen has lately reduced costs for its ID range of EVs in various European nations.

The Megane went on sale in early 2022 for 35,200 euros for the base model with a 40-kWh battery (a 60-kWh battery is also available). The company has since updated the smaller-battery version with extra standard features.

The Megane is available in 3 versions : Equilibre , Iconic & Techno +

“The competition in terms of pricing or leasing is stronger than a few months ago, and it will take a few more years for the electric vehicle market to stabilize,” Segal said.

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