Renault: Car Scrap Scheme Is Off To A Very Slow Start

05.18.2011 ZF English

Unlike last year, when the Romanian car scrap scheme prompted sales to double in its first month against the previous month, this year the scheme was off to a slower start, with every voucher holder seeking to get as high a price for it as possible.

"Sales through the scrap scheme have had a slow start this year, much weaker than what we expected initially, when there was excitement on the market. Now things are much quieter. On the other hand, the corporate segment continues to perform," said Dora Pasare, Renault brand manager.

Under the circumstances, Renault dealers have focused more on selling fleets to corporates, which have the advantage of selling large volumes, as well as of deriving extra revenues from servicing operations, considering that company vehicles, be they utility vehicles or cars, cover higher annual mileage than privately-owned cars.

Around 25% of Renault's sales in the first four months of the year were accounted for by commercial utility vehicles, according to statistics of car market players.

The French carmaker held an around 20% share of this market in January-April, according to brand officials.