PARIS (Reuters) - Renault (EPA:RENA)'s Dacia brand cut the price of its low-cost electric vehicle (EV) by 2,000 euros ($2,086) in France on Tuesday, part of a wave of expected discounts in Europe this year to boost stagnant EV sales.
Car makers in Europe are expected to rely on discounts to push more EV sales to help them meet tougher new emissions rules in the European Union.
At least one-fifth of all European sales by most car companies must be EVs to avoid heavy fines but only 13% of vehicles sold in the region during the first 11 months of 2024 were electric, according to the European Automobile Manufacturers' Association.
Dacia, the region's leading low-cost brand, said it was dropping the entry price of its electric Spring model to 16,900 euros, closing the gap with China's Leapmotor (HK:9863).
The Chinese firm, which has a joint venture with Stellantis (NYSE:STLA), recently cut the price of its T03 by 4,000 euros to 14,900 euros, keeping its position as the cheapest EV in the region.
The new Spring will also be less powerful, with a 45 horsepower engine, compared with the 65 HP (NYSE:HPQ) engine in the more expensive version.
Both versions use the same battery, allowing for the same driving range of around 225 kilometres.
The discount on the Spring has already taken effect in some other European markets.
($1 = 0.9588 euros)