How rising car prices have affected Dacia in the midst of a microchip dispute

How rising car prices have affected Dacia in the midst of a microchip dispute

Dacia, a low-priced brand based on quality, deals with stock disputes over retailers due to global shortages. All this in a situation where the prices of used cars are facing rising because of rising demand. How do these problems affect the brand? Denis Le Vot, CEO of Dacia, examines the overall theme of the industry.

Type Dacia it is not uncommon for all the problems that the automotive industry faces in Europe. And it is that, despite its status as a low-priced company, the Romanian manufacturer must also address the challenges facing the industry. The stock crisis in retailers Due to the global shortage of microchips, it has created a stain on production facilities where Dacia cars are manufactured.

As if that were not enough, The bulk of the demand for new cars has shifted to the second-hand market based on the long delivery time that the brand gives to their buyers. For the greater part of the public, it is impossible to wait for about half a year to receive a new car. This has had a direct impact on the price of used cars. And that is, before the demand increases, prices for used cars are also rising.

Video trial of Dacia Sandero, one of the best-selling cars in Spain

Dacia stopped repairing approximately 100,000 cars by 2021

How much is Dacia affected by microchips deficiency? And what does the rising cost of used cars mean for this low-cost product? Denis Le Vot himself, CEO of Dacia, has provided tips on this issue during an interview with a special agency.

Asked if Dacia would be able to meet the needs of the new Jogger in the context of microchip shortages, Le Vot mentioned the problems the brand went through in the past year, when lost approximately 100,000 vehicles: «Dacia probably suffered a loss of nearly 100,000 cars last year due to shortages. But in the meantime, our order book has grown to the same extent. We had 37,000 orders on January 1, 2021 and January 1, 2022 was over 130,000 units.

According to these figures, Dacia’s chief executive said that what was lost in 2021 could be translated into customers who were waiting to receive their new car: “Then we can say that everything we feel we have lost, in fact we. Do not lose it. we are not happy about that, “Le Vot commented.

Dacia’s position ahead of rising car prices

Another key to consider when analyzing the general state of the automotive industry is related rising car prices. And not just new cars. The used car market is also experiencing some price increases. When asked about whether or not it benefits from its status as a low-priced brand despite rising second-hand prices, Le Vot highlighted Dacia’s role within the Renault Group.

“Yes, it does. But it is important to remember that Dacia is with Renault. As car prices rise, it is a great strength for Groupe Renault that we are both on the market, with Renault at the top and Dacia at the bottom. We see people “Most do not justify the way they buy cars. They do not want to spend € 21,000 on a car they could buy four years ago for € 17,000,” Le Vot said.

Dacia offers in a variety of versions and more common materials to cope with rising prices. Like other brands, Dacia’s new cars have also become more expensive. Le Vot spoke of the problem of rising raw materials: “Despite the shortage of microchips, we are seeing cars become more expensive, the price of raw materials rising, and the more people there are, the more Dacia is.”

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