“Value over volume” is the strategic mantra driving Renault Australia, according to General Manager, Glen Sealey, yet the brand’s recent increase in sales was even recognised by Group Renault in its wrap up of global results for 2022.
Independent importer-distributor Ateco Group took over Renault’s local representation from the former direct subsidiary in mid-2021.
Group Renault was hit harder than many rivals by the Covid-19 driven supply chain crisis, with global sales down 9.4 per cent last year. But Australian registrations grew by no less than 25 per cent in 2022, the first full year with Ateco in the driver’s seat.
In distributing its annual results announcement the French giant called out Australia on social media as one of its top-performing export markets, with others including South Africa (+28 per cent) and Turkey (+23 per cent).
Mr Sealey told CarsGuide, “Sales are up, but our ambition is a quality business”, adding that three main pillars have underpinned the brand’s growth here.
“First, we’ve simplified things. Renault is big in Europe, not so big in Australia. Ateco is a lean business, and that goes for Renault, too.
“We sell higher end versions of Renault, which represent 70 per cent of the mix. (Customers) want the higher specs.
“So, for example, with the upcoming Megane E-Tech, we’ll offer one variant, with the big battery, bigger motor and higher-specification.
“And we’re making sure the private market is a sustainable part of our business. We’ve gone up 18 points in private since 2019, so now 50 per cent of our sales are private.
“Our line-up will be three SUVs, three light commercials, and then we move into our electric range.
“Second, we’re focusing on engagement with customers, staff, the dealer network and suppliers.
“Our NPS (Net Promotor Score which measures the loyalty of customers to a company or brand) is up nearly 10 per cent. So, our customers are telling us we’re doing the right thing.
“Then, we’ve improved dealer technical support, adding facilities in Sydney and Brisbane to supplement the established hub in Melbourne.
“We have 58 dealers, and a lot of other dealers are out there with their hands up,” Mr Sealey said.
Mr Sealey says the third centre of activity is media engagement.
“Renault does suffer from low brand awareness. People think you’re talking about a home renovation show on television. Seriously.
“So, we’re building the brand and investing from a marketing standpoint. Not distress marketing. We’re very disciplined in how we spend.
“Good, solid brand creative, and we’ve been doing that now for nearly two years,” he said.
Asked if Renault Australia’s rising profile with the factory has increased its leverage in product and pricing discussions, My Sealey says, “It’s nice recognition. Does it get us more product when we need it? I don’t know.
“As a business, we’re going well. It’s been a good almost two years for us,” he said.
And for the longer term Mr Sealey says, “Tapping into Renault’s commercial product portfolio… that’s our opportunity.
“Light commercial is still an important part of the business, but we have been hampered, like everyone, on supply. Supply is killing us on vans,” he said.
Keyword: From zero to hero! How Renault has driven sales success in Australia with SUV, light commercials and good strategy