Magazine article Marketing

Scrappage Initiative Shows Budget Car Value

Magazine article Marketing

Scrappage Initiative Shows Budget Car Value

Article excerpt

Leading car manufacturers are attempting to capitalise on the growing market for low-cost vehicles, following a surge in sales of budget models under the government's scrappage incentive scheme.

Entry-level brands, such as Kia, have benefited from the cashback initiative. The Korean marque made more than 25,000 sales under the government's offer of pounds 2000 toward the purchase of a new car in exchange for an older vehicle.

Last week, Renault announced plans to launch its entry-level Dacia brand in the UK. The Romanian marque, which was acquired by Renault in 1999, has steadily increased its sales in Europe, from 164,000 new registrations in 2005 to 310,000 last year.

Renault UK managing director Roland Bouchara said that 'value-for-money, downsizing, fuel economy and emissions' are all increasingly important to UK drivers, and suggested that Dacia cars could satisfy these requirements.

He added that he hoped the Dacia brand could appeal in equal measure to 'the head, the heart and the wallet' of UK consumers.

Rival French carmaker Peugeot has long been rumoured to be considering the reintroduction of former UK marque Talbot, which was discontinued in 1986.

Several Chinese and Indian manufacturers are also expected to enter the European market over the next few years. …

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