Q: The economic landscape is presenting various global challenges. How is Renault navigating these challenges in the SEE region, and specifically in Romania?
Mrs. Cecilia Tudor: The transition to electric mobility is both a challenge and an opportunity. The car industry is being turned on its head, especially when it comes to engines. The need for lower fuel consumption and CO2 emissions, increasingly stringent anti-pollution standards, and new consumer expectations are making electrification essential. After setting up the pace with EVs, Renault is enriching its range with an E-TECH hybridization package that is true to form: efficient, affordable, and placed in the heart of the market with best-seller vehicles. The aim is to make the experience and joy of driving electric vehicles widely accessible, at a time when customers are making increasingly practical, smart, well-thought-out, rational choices.
The development of the electric vehicle market cannot take place without a massive increase in the infrastructure needed to recharge and supply renewable electricity. Ambitious infrastructure goals are needed, but also incentives for consumers. All these factors will impact both our business and our partners, generating more openness to synergies, collaborations, and concern for the quality of the products and services that together make available to our clients.
Q: Can you elaborate on the specific challenges and opportunities you face in our region compared to others in Europe? Could you share insights into the market trends and consumer preferences that are shaping Renault's strategy in the region?
Mrs. Cecilia Tudor: User demands and mobility habits are changing. Our customers are looking for fit-for-purpose mobility solutions that will optimize the cost of their journey, using vehicles that are more friendly to the environment. The automotive industry needs to reinvent itself to meet their expectations, or others will seize the opportunity. It is up to us to deliver low-carbon, flexible mobility solutions to suit all types of customers. To make the most of our natural resources, we must build these solutions around vehicles made mainly with materials from the circular economy.
According to some studies, a personal car is in use only 10% of the time. Meanwhile, it loses half its value in just three years. With this knowledge, some users are seeking to reduce the overall cost of their travel and turning to new mobility solutions. One of these is shared mobility, which optimizes the use of a car and reduces the number of vehicles in circulation, as well as their environmental impact.
In Romania, there was up to a certain point a greater reluctance to purchase electric vehicles, a fact that has visibly reduced in the last 2-3 years. They are small steps, if we do not forget the volume, but the percentage increase does not confirm an upward trend, which may not bring something closer to the rest of the regions in Europe in a shorter time than we estimated, perhaps, 10 years ago.
Renault was one of the first brands to promote EVs on the domestic market, it somehow set the tone, and the range of models in this segment, in continuous development, will continue this strategy.
Q: As a pioneer and a leader in the electrification of vehicles, how is Renault Group navigating the transition to electric vehicles on global scale and in our region?
Mrs. Cecilia Tudor: For the past decade, Renault Group has been fully committed to the development of large-scale electric mobility. The Renaulution plan, unveiled in January 2021, focuses on the group’s electric leadership and the unique advantages of its E-TECH, hybrid and plug-in hybrid technology. It aims to widen its electric mobility offer, both in terms of vehicles and services. The objective of Renault Group is simple: to make electric travel accessible to everyone by offering solutions to every need. Year after year, Renault’s electric vehicles remain the most prevalent on European roads, representing nearly 15% of all 100%-electric vehicles sold in Europe in 2021. On a global scale, more than 490,000 electric vehicles have already been sold by the group.
In Romania, Renault benefits already from an extensive electrified offer: from 100% EVs - Megane E-TECH Electric, ZOE, Kangoo Van E-TECH Electric – to E-Tech mild-hybrid, full-hybrid, and Plug-In hybrid models – Clio, Captur, Arkana and Austral. We recently revealed at international level our new electrified models: Rafale E Tech full hybrid - a new and daring model, the brand's new flagship – and Scenic E Tech electric - the first more sustainably designed all-electric family vehicle. And if we discuss numbers, after nine months this year, Renault ranks third on the Romanian market, with a total volume of almost 800 units and a market share of 6.6% (+3.6 points vs similar period in 2022).
Q: How are you addressing infrastructure challenges related to charging stations in Romania?
Mrs. Cecilia Tudor: We observe from year to year a consistent increase in the number of charging stations, including high-speed ones and not only. But this trend should follow the evolution of the EV market. There are various national, local, private, or public-private initiatives through which the network of charging stations should expand from now on. We, at Renault, have our own charging network in all showrooms in the country, where all our customers have access and can also benefit from professional consultancy for everything that means the ecosystem of an electric vehicle.
Q: What to expect from Renault next year? What models are you preparing, and which ones will be adopted most quickly in the CEE market? Which car will make us immediately consider purchasing a Renault?
We will have a 2024 reach in new products, benefiting also from full year commercialization for other models launched in 2023. I previously mentioned 2 new models Scenic and Rafale – which are going to enter the Romanian market next year. along with these, we will continue the success that we see after a few months of presence on the market of the Austral model, which has already won the appreciation of the Romanians. And, if we look at the Megane E Tech electric that amazed us even before arriving in showrooms last year, when it registered over 500 orders without being seen physically by any customer, I will say that Scenic has all the assets to surprise us in an equally pleasant way. And I also think it's the most suitable recipe for any customer who wants an electric family vehicle. However, I could not say with absolute certainty that a specific model will be decisive for any customer who wants to buy a vehicle next year. Because I am convinced that for every customer there is a need, and for every need there is a Renault model that not only satisfies this need but makes that customer's life easier and more beautiful. So, I believe in all our models, and I believe in the potential of each one in its segment.
Q: The LCV market is in a constant dynamic, and Renault has an extensive range of solutions. How do you see its evolution in the context of European regulations regarding the reduction of CO2 emissions? Will we see here a transition to a strictly electric range?
Mrs. Cecilia Tudor: If we look at the macroeconomic level, climate change accelerates the need to transition to electrification; future regulations on CO2 emissions in freight transport and restrictions on access to cities are radically transforming the logistics ecosystem. Business customers are already facing increasing pressure on cost of ownership and the need to electrify vehicles that are safer and fully connected to their business.
For the moment, we are talking about great performance at global level in this field. In Romania, Renault is the leader of the LCV segment, with a 26.6% market share, the 3,235 units registered up to the end of September representing an evolution of +5 points compared to the same period last year. Now, the range of Renault LCVs already includes electric vehicles - Kangoo, Trafic and Master. Renault therefore has a model in each LCV segment, thus responding to different types of customer needs. All of them have multiple possibilities for personalization and bodywork, considering the specifics of each client's activity.
By 2030, the European market for electrified vans will triple, representing a tremendous opportunity for a completely new range of light commercial vehicles, especially in the booming e-commerce and rental segments. Thus, Renault Group, Volvo Group and CMA CGM recently announced that they are joining forces to pioneer and lead this new market with a completely new generation of 100% electric vans and associated services. The problems of logistics players will be addressed with superior and secure solutions incorporating the new Software Defined Vehicle platform and a wide ecosystem of customized solutions.
Q: Romania has one of the most attractive bonus systems for customers who want to buy a new car, if we look at the whole of Europe. Do you consider that such a program has a major impact on the evolution of the car market in Romania?
Mrs. Cecilia Tudor: Indeed, the Rabla and Rabla Plus national programs represent a real support for clients, but I would add that not only for them. We cannot ignore the benefits for the environment as new vehicles take the place of old ones, with lower or even zero emissions and advanced systems that protect everyone on the road.
The fact that in Romania we have one of the biggest bonuses in Europe for the purchase of EVs has contributed to a sustained evolution of this segment at the national level, a segment that needed a boost and support to become more accessible to a larger number of clients.
Q: How does Renault Group engage with the local communities in Romania, and what initiatives are in place to contribute to social responsibility and sustainability?
Mrs. Cecilia Tudor: Renault has launched this year, at international level, the Human First Program to present all its safety initiatives to the public and position itself as a people-centric tech brand. Together, this program – the result of collaboration between engineers, safety experts, product managers, the LAB and first-aiders (firefighters) – and recent technological developments – such as artificial intelligence – will make Renault stand out. In Romania we already start working on one of the components of this extensive program and we developed a series of events with the firefighters. We are the partners of the national extrication competition, providing the organizers with decommissioned Renault vehicles that can be used in exercises that simulate road accidents of various complexities, allowing the specialists who must intervene to test solutions and reduce reaction time and, thus, to save more lives. In our Technical Center in Titu, there was a series of train-the-trainers type actions dedicated to firefighters, where we also offered vehicles and expertise to contribute to the efficiency of the activities necessary for interventions in the event of road accidents. Other similar activities are planned for next year as well because we want to build a consistent, sustainable project that will benefit anyone on the street - driver, passenger, or pedestrian.
You can also find the full interview in the document below:
