Renault Group UK’s announcement that it will cut its car dealership network by around 20% by the end of 2025 is a logical move, according to industry experts.

The French manufacturer is expected to shrink its 144-site retail network, which represents Renault, Dacia and Alpine, down to about 115, with a focus on reducing the number of partners it deals with and ensuring profitability for those that remain.

But its actions have come as little surprise to those who have been watching the steady trend of OEMs that have been issuing termination notices to their dealers and rationalising their networks over the last 12 to 18 months, writes Alex Wright.

“Renault is basically rationalising into a more efficient structure where it has to deal with fewer franchisees,” said Professor Jim Saker, director of the Centre for Automotive Management at Loughborough University’s business school and president of the Institute of the Motor Industry.

“In the grand scheme of things, it’s not unexpected, and I suspect one or two others will be following suit.