Renault says it is determined to capture a larger slice of the Australian van market
By Gary Worrall | May 10, 2012
With a refreshed product range and a dealer network that is growing every month, Renault is determined to capture a larger slice of the Australian van market.
In an exclusive interview with ATN, Renault Managing Director Justin Hocevar says he is pleased with how the Australian market is accepting the return of the French marquee, although he also admits to being surprised at the subtlety of demand.
“We are understanding now that ‘fit for purpose’ is the key for buyers,” Hocevar says.
Previously, the company expected to sell more of the base specification van, but Hocevar says buyers are proving to be more exacting in their needs and wants.
He says this is one reason why the company is offering free upgrades to factory-fitted satellite navigation packages across the product range, with close to 40 percent of buyers taking the option previously.
Renault’s head of light commercial vehicles in Australia, Lyndon Healey, says he is happy with the market acceptance of the entire range, with the Kangoo light van holding its own in a competitive market.
“The Kangoo is in a very competitive end of the market, with a lot more players, but it is doing quite well. The new design has been very well received,” Healey says.
“We are targeting the end of financial year, that is a big time for all commercial vehicles.”
Year-on-year, Healey says all three models, Kangoo, the mid-size Trafic and heavy duty Master van, are tracking well, with all three showing improvements over 2011 sales.
“We are seeing a building of interest as people consider the brand.”
A key piece in the puzzle of building sales is to expand the dealer network Hocevar says, with four new dealers signing on since the start of the year. Another extra three dealers are expected to sign by July 1.
“We are targeting 30 dealers by the end of 2012,” he says.
While capital city dealerships are addressed, Hocevar says they are now analysing sales data to identify the best regional centres, which are expected to include Newcastle and Shepparton.
Although he is keen to see the Kangoo ZE electric van come to Australia, Hocevar says there are barriers to entry that need to be addressed, including recharging points to make the vehicle viable for operators.
“It is a quite exciting product, it is clearly ground breaking,” he says.
With Renault committed to introducing the full electric Fluence passenger car in late 2012, Hocevar says the case for the electric Kangoo will receive a boost from the expansion of chargers built for Fluence.
“It is undoubtedly a niche opportunity, outside of standard usage,” he says.
Healey echoes this thought, saying that with plenty of businesses operating in short range applications, the electric version is viable.
“If people understand the limitations of the vehicle, there is an equation that works,” Healey says.
With the impending introduction of the carbon tax, Hocevar says one possibility is to leverage the electric vehicle product against less efficient vehicles in a fleet.
“We have had interest from fleets, they know the operating parameters, but they have another set of problems to deal with having to make the CO2 emission targets,” he says.
Hocevar says by offering a combination of electric passenger cars and light commercials, Renault can help offset emissions, with the zero emission vehicles offsetting less efficient vehicles that cannot be removed from the fleet.
Despite this, Hocevar says there is a need for government incentives to help remove the price barriers for electric vehicles.
“It can be rebates such as tax reduction, or registration discounts, or even access to commuter lanes for single occupant vehicles.”
While he would like to see government incentives introduced, Hocevar says Renault has taken the initiative on pricing, with ZE buyers leasing the battery packs, which takes much of the sticker shock out of pricing.
“Renault’s battery leasing package takes 10 to15 percent out of the purchase price, and also takes care of the battery’s second life,” he says.
While Mercedes-Benz is investigating an insurance option to help offset the purchase price of safer vehicles, Hocevar says Renault has not gone that far, although it has now launched an in-house finance company.
“We try to have the best in class ratings for passive and active safety, and also to make it available at the lowest possible premium,” he says.
“They are already highly specced on safety, plus insurance data shows Renault is under-represented in accidents due to our long history on safety.”
While the impending arrival of Chinese vans is generating plenty of conversation around price versus safety, Healey says Renault will not be competing on price, but will instead be pushing the value equation.
“The total cost of ownership is the key,” Healey says.
Hocevar says Renault’s goal is to put together a combination of safety, ergonomics, drivability and fitness for purpose, backed by a service and parts network to keep customers on the road.
“I do think China will improve over time, but we will do what we do best.”
