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Renault: Car scrappage scheme is off to a very slow start

Renault: Car scrappage scheme is off to a very slow start

Autor: Bogdan Alecu

18.05.2011, 15:49 36

Unlike last year, when theRomanian car scrappage scheme prompted sales to double in its firstmonth against the previous month, this year the scheme was off to aslower start, with every voucher holder seeking to get as high aprice for it as possible.

"Sales through the scrappagescheme have had a slow start this year, much weaker than what weexpected initially, when there was excitement on the market. Nowthings are much quieter. On the other hand, the corporate segmentcontinues to perform," said Dora Pasăre, Renault brandmanager.

Under the circumstances, Renaultdealers have focused more on selling fleets to corporate entities,which have the advantage of selling large volumes, as well as ofderiving extra revenues from servicing operations, considering thatcompany vehicles, be they utility vehicles or cars, cover higherannual mileage than privately-owned cars. So the number oftechnical inspections per year also rises.

Around 25% of Renault's sales inthe first four months of the year were accounted for by commercialutility vehicles, according to statistics of car market players.The French carmaker held an around 20% share of this market inJanuary-April, according to statements from brand officials.

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