Dacia’s focus on value shapes its future strategy

If there’s one car brand that perfectly embodies the budget segment, then its Dacia. In just 10 years, the Romanian car maker has established itself as a major player in the UK market by offering robust, cut price models and great customer service.

With a mantra to provide nothing but the bare essentials, Dacia has marketed its cars as ‘shockingly affordable’ and become the go-to brand for those that want sensible cars with no frills or thrills.

The tactic has paid dividend for Dacia, allowing it to shine in the retail market where historic budget brands like Kia, Hyundai and Skoda used to clean up but have since moved upmarket with fancier, more expensive models.

In the fleet market, Dacia has won fewer fans. Its line-up of low-spec, non-electrified cars failed to resonate with user-choosers and a reluctance to offer discounts meant fleet buyers often looked elsewhere.

Luke Broad, brand director for Dacia UK, says: “We judge each fleet customer, each opportunity, on its own merit and we operate a low-to-no discount policy that applies to our retailers and the business that we do ourselves. Historically, the fleet market's been, I think it's fair to say, very discount driven.

“I won't go chasing volumes at any costs.”

Dacia sold 27,313 vehicles in the UK in 2022, with around 10% of these going into the fleet sector.

But the brand is about to embark on a new chapter as it launches its first hybrid model, which is expected to spark interest among fleets.

The Jogger Hybrid is Dacia’s largest, most expensive and most technically advanced model to date, yet it still remains true to the brand’s core principles.

Broad explains: “If any product of ours is going to appeal to a fleet customer, Jogger is the one that's going to do it. It's got absolutely everything that you would ever need within a car, without all the complex things that you would probably use once and then forget exist.”

Last year, Dacia refreshed its entire model line-up with a new brand identity. This is now being rolled out to the dealer network and due to complete before the end of the year. The new branding represents Dacia’s focus on value for money.

“The key thing for me is 'best value'," says Broad. “And there’s a really important distinction to make between that and 'cheapest'.

“When we launched Dacia in the UK, we had to make a name for ourselves. We had to establish ourselves as a brand and the way that we did that was offering what we used to call shockingly affordable cars. As the brand has evolved, customer's needs and tastes have also evolved, so we have to follow that trend.

“We will always be the best value - which is, for the money that you spend, what do you get in return for that money - but we won't always necessarily be the cheapest. And, personally, I'm happy with that.”

The UK’s cheapest car

Dacia become famous for being the manufacturer of the UK’s cheapest new car, with its Sandero model once offered for less than half the price of a Ford Fiesta.

In line with Broad’s strategy to focus on value for money, rather than rock-bottom prices, the compact model now costs almost £14,000 but is equipped with features like LED headlights, Apple CarPlay and keyless entry. There’s also the Sandero Stepway, a more rugged crossover version, that is the stronger seller of the two.

Dacia’s best-selling model in the UK is the Duster compact SUV, which is also available as an N1 homologated commercial vehicle.

Joining the new seven-seat Jogger, Dacia’s line-up will expand further by 2025 with the Bigster, a new entrant in the C-SUV segment that shares a platform with the Renault Austral.

Broad says: “I think we'll be difficult to ignore over the next four or five years, but the key point is we will stay true to the brand philosophy of being the best value for money.”

It’s also likely that Dacia will introduce its first fully electric model in the next two to three years. The Dacia Spring (pictured below), a small electric SUV, is already on sale in other markets and Broad is keen to see the model introduced in the UK.

“We know 2030 is coming quickly and we have a plan, but we will only start that journey when our customers are ready,” he adds.