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Dacia could slow Chinese introduction to UK market

Budget car brand Dacia could gain a large foothold in cash-strapped austerity Britain which could put the brakes on Chinese ambitions to target the UK car market, according to CAP.

CAP believes the time is right for “no frills” budget motoring in Britain and point to Dacia’s success in Germany and France as evidence that the brand can win motorists over.

Dacia will be first to meet demand for good quality cars at around 30% lower prices than existing mainstream offerings.

CAP believes few motorists will remember the demise of the original Dacia brand in 1996 and will therefore be coming ‘fresh’ to the name, which now has the advantage of being part of the Renault-Nissan alliance and will enjoy an instant dealer network presence.

Although the vehicles are built in Romania they are underpinned by Renault and Nissan technology and built on a platform shared by those manufacturers.

Forecast values are nowhere near class-leading, according to CAP Monitor, but with such low front-end pricing motorists will still save significant money on depreciation – the largest cost element in the ownership of any car.

CAP Monitor editor, Jeff Knight, said: “With Dacia you are effectively getting a car in one sector for the price of a car in the sector below it.
"This means the Sandero offers the qualities of a good supermini for the price of a typical city car and the Duster provides a compact 4x4 experience for the cost new of a lower medium car.

“What the Dacia brand offers today is very different from previous attempts by some new entrants into the UK in that there is relatively little sacrifice of quality for a very significantly cheaper car. Previously the sacrifice of quality has been too much for most motorists but Dacia provides a no frills approach to basic design, coupled with appropriate levels of equipment and engineering that you can’t fault. Build quality reflects the budget but that does not matter in this case because Dacia is not chasing conquest business from premium brands.

“Dacia will not hold the highest percentage of its original cost new but when you compare the actual money lost over three years the Sandero in particular offers some of the best value motoring achievable."

Knight believes Chinese carmarkers will be watching what happens with the Dacia brand as it will be a "significant threat to anyone attempting to impress the British motorist on new car cost alone".



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Comments

  • Keith - 11/01/2013 12:51

    This interesting

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  • Frank - 11/01/2013 12:59

    Really!!!!! We have one of the most mature markets in the world, Customers simply will not buy this product unless the safety features meet their expectations. While Fiat are still selling 500 in great numbers then I think Dacia may be kidding themselves

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  • Andy - 11/01/2013 13:03

    With Renault going from 7% market share down to 2% in the last 10 years, and the dealer network shrinking by at least a third, the dealers need something to generate some hope for the future!!

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  • Kel Prince - 11/01/2013 13:03

    Dacia did not perform well in recent impact tests and buyers should watch out for depreciation.Many years ago I took a franchise for the original (Long before Volkswagen)Skoda.Cheap,yes but depreciation resulted in them being an expensive buy.

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  • T.SMITH - 11/01/2013 13:10

    WE HAVE SOLD 20 DACIAS IN A FEW MONTHS - RENAULT UK HAVE SOLD OVER 2000 (WITHOUT ANY TESTDRIVES) WE HAVE SANDERO AND DUSTER IN OUR SHOWROOM - GOOD PRODUCT - BUILD QUALITY GOOD

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  • Chas - 11/01/2013 15:34

    The entry level car is very low spec(not even a radio), higher emitter,lower mpg and is ONLY £4 cheaper than Suzuki's very green Alto which is headlined at £5,999 (no Road tax, no Congestion charge)

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    • Samantha - 11/01/2013 20:57

      Different car categories altogether . The cheapest Alto is £7200, although hugely discounted because of low level sales, but it is ridiculously small, and does come near the Sandero re. space.

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  • Frank - 11/01/2013 16:20

    Anybody actually driving a Dacia want to speak up and support their product? No, thought not!!!!!!!!!!!!!!!!!!!

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  • Samantha - 11/01/2013 20:42

    Dacia is making a huge mistake here. Their cars are not only late on delivery, but none of the Sandero are anywhere to be seen... ...and their advertising campaign has all been about the sub 6k Sandero!. Big mistake, Don't advertise what you don't have for sale.

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  • Warren - 13/01/2013 18:59

    Well I've ordered a diesel Sandero and I'm extremely pleased with the quality of the car. My local dealer has a UK spec model on display. Yes it will sacrifice a bit of spit and polish here and there, but that doesn't bother me one bit. With no road tax and 65mpg fuel figures that'll do for me. As for depreciation - again at £8.4k there's a whole lot less to lose than purchasing a £12k diesel car. I'm very pleased with my purchase as I've never been a badge snob. I just want practical motoring at the cheapest price I can get.

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  • Frank - 14/01/2013 08:40

    Well Warren good luck to you and well done for sticking up for the product however, we will see in 3 or 4 years what your part exchange value is and if you can get anybody to buy it!!!!!

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    • Warren - 14/01/2013 21:26

      @Frank - Hi Frank and thank you for your reply. I'll post the following comments from CAP who are the acknowledged experts in the car industry in forecasting used car value:- "Dacia will not hold the highest percentage of it's original cost new, but when you compare the actual money lost over 3 years the Sandero in particular offers some of the best value motoring achievable." Dacia will not be a Perodua or Proton for used car values of that I'm certain. Dacia have Renault behind them. The platform for the Sandero is also used by Nissan.

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    • Ben - 09/02/2013 00:54

      @Frank - just to give you an idea from CAP the top of the range Laureate 1.2 16v achieves a 47% residual value after 3 years 45k miles. That's best in class and even trumps the Skoda Fabia!

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  • john harold - 16/01/2013 13:57

    Hi, I have ordered the basic spec Dacia Duster (1.6 petrol) with the 2 year extended warranty (£395 to bump it up to 5 years cover). The display car is a German LHD model, the dealer informs me the UK models set to arrive with have a different higher quality dash board as part of a dashboard over hall which central Europe is currently getting on the Duster. The only disappointing thing so far is the delivery date, it is set to be May or June. The Dusters are coming from India. I was under the impression I could have any Sandero I wanted by February as they are coming from Romania. U must say, I was tempted at the 1.2 Sandero mid spec for £6695. A lot of car for the money when you compare it to the rivals. And hasn’t the Dacia Duster and Dacia Sandero been tested against the NEW Euro NCAP ratings, not the old ones. The same new ones which has seen the Toyota Aygo, Peugeot 107 and Citroen C1 facelifts also only score 3 star? These cars are very popular in Germany and France for good reasons.

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    • Warren - 16/01/2013 15:27

      @john harold - Hi I've just ordered a diesel Sandero, but that won't arrive until April. I'm sure you'll love the Duster when it arrives (even though the wait's a bit of a pain). Unlike yourself, I'm not sure about the extra warranty yet, I'll make up my mind closer to the date. The new Sandero hasn't been NCAP tested yet.

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  • john harold - 16/01/2013 13:57

    Hi, I have ordered the basic spec Dacia Duster (1.6 petrol) with the 2 year extended warranty (£395 to bump it up to 5 years cover). The display car is a German LHD model, the dealer informs me the UK models set to arrive with have a different higher quality dash board as part of a dashboard over hall which central Europe is currently getting on the Duster. The only disappointing thing so far is the delivery date, it is set to be May or June. The Dusters are coming from India. I was under the impression I could have any Sandero I wanted by February as they are coming from Romania. U must say, I was tempted at the 1.2 Sandero mid spec for £6695. A lot of car for the money when you compare it to the rivals. And hasn’t the Dacia Duster and Dacia Sandero been tested against the NEW Euro NCAP ratings, not the old ones. The same new ones which has seen the Toyota Aygo, Peugeot 107 and Citroen C1 facelifts also only score 3 star? These cars are very popular in Germany and France for good reasons.

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