Renault’s fleet push sparks investor fears of profit erosion

The Renault Group has long boasted of its popularity with private car buyers, particularly through its Dacia brand. However, recent declarations that it wants to move more into the fleet segment have worried some investors, who fear it means a return to deep discounting.

Traditionally, private sales are of higher value than sales to businesses, who use their promise of bigger orders to push for lower prices.

Renault’s expertise in smaller, cheaper ICE cars chimes better with the need of private customers, but its shift to bigger models (such as the Symbioz and Rafale) and the growth of tax-friendly hybrids have led to it targeting fleets.

This concerns investors, who have been generally keen on Renault’s transformation under CEO Luca de Meo and in particular its ability to keep pricing high.