Dacia Shows Biggest Growth in Europe Car Market

Dec 17, 2013 11:12 AM EST | Jordan Ecarma

Renault's low-cost Dacia is the hottest car in Europe this year.

The brand showed the greatest gains in data released Tuesday; 2013 sales through last month jumped more than 21 percent year-over-year, The New York Times reported. Mazda and Jaguar tied for second place with sales gains of 15.6 percent each.

Purchased by French carmaker Renault in 1999 and reappearing in 2004, Dacia takes less than 3 percent of the European car market but has had a "remarkable" performance, the Times reported.

While a Dacia would be "awful," for anyone accustomed to a Mercedes or BMW, it's a practical buy for shoppers looking for a bargain, according to Jens Schattner, an analyst with Macquarie in Frankfurt.

"But if you just need to get from Point A to Point B, it's simple, reliable technology, and you get a three-year warranty. It's all you need," Schattner said.

Dacia has done well even in a struggling European market, where auto sales are facing a second year of decline, according to data from the European Automobile Manufacturers' Association. Sales fell 2.7 percent for the first 11 months of 2013 compared with the same period last year.

Dacia has sold around 260,000 vehicles this year through November, and the brand's market share has grown to 2.6 percent.

The company keeps costs low with minimal marketing, small distribution expenses and no discounting. The brand's vehicles, which include a full range of pickup trucks, SUVs and station wagons, are sold through existing Renault dealers.

Buyers like Dave Wright, of Preston, which is about 30 miles north of Manchester, England, appreciate Dacia's reliable technology without unessential frills.

"So long as this vehicle remains reliable, I look forward to future Dacia models," said Wright, who recently bought a Dacia Duster for 12,995 pounds, or about $21,200. "I like the Dacia ethos, it fits in with my own mind-set. It's simple no-nonsense value for money. A niche the big manufactures have failed to fill."

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