Dacia has commenced selling its Lodgy minivan in Denmark, the latest western European market and 41st market in the world where the brand has made known its presence. Earlier this year, Dacia has started selling it vehicle products in the United Kingdom and Ireland. The brand's expansion into Denmark marks the completion of its rollout in the European Union where strong demand for its low-cost units has helped Renault stay afloat while the region suffers from recession.
Dacia is also set to sell its Dacia Sandero subcompact at 33 Renault dealerships in Denmark. Dacia’s largest and second-largest global markets are France with 84,522 vehicles sold in 2012, and Germany with 46,617 units sold last year.
The main appeal of Dacia-badged cars lie with the fact that they typically 20-percent less costly than mainstream brand models in Europe.
Ian Fletcher, an analyst at IHS Automotive, remarked that Renault owes Dacia's high margins to the “very astute way it build these cars. He added that is also viewed as a very attractive alternative in mature markets in western Europe.
According to analyst estimates, Dacia's operating margin is between 9 percent and 10 percent, which is significantly higher than typical margins of mainstream carmakers.
Renault saw its sales in the EU and EFTA drop by 10 percent in May 2013. Dacia’s 16-percent hike in May also offset Renault’s 18 percent drop in the regions, according to industry association ACEA. During the month, Dacia sold 359,654 units around the world for a 6-percent rise.