Renault's budget brand, Dacia, experienced impressive year-on-year sales growth of 24.2% in the first six months of this year, highlighting the significance of the affordable brand in the face of

economic uncertainty.

Although the sales performance has improved, lingering supply-chain issues have resulted in a production setback for the Dacia Sandero city car in Morocco. An executive revealed that approximately 20,000 fewer units of the Sandero were produced during the period due to these challenges.

Dacia, known for its popular models like the Sandero, as well as its expansion into the electric vehicle (EV) market, sold a total of 345,432 vehicles between January and June, according to a statement from the brand.

In comparison, Dacia sold 277,885 units in the same period last year, which was significantly impacted by the COVID-19 pandemic and component shortages.

During the first half of this year, all four of Dacia's main models experienced sales growth. The hybrid Jogger model, in particular, witnessed an impressive 130% increase in sales, accounting for more than one in four customer orders.

Sales of the Chinese-made Spring, one of the most affordable electric models in the French market, surged by 38%. Additionally, sales of the Sandero increased by 24%.

The demand for electric and hybrid vehicles has risen in the European Union over the past few years, primarily driven by government subsidies and corporate fleets seeking low- or zero-emission options.

Although demand in certain countries has been affected by mortgage rates and unfavorable exchange rates, Dacia's affordability makes it an attractive alternative for price-sensitive customers, as stated by Dacia's marketing, sales, and operations director, Xavier Martinet, during a media call.

However, Martinet also highlighted ongoing supply problems that continue to hamper production. While there has been some improvement, he mentioned that the situation remains challenging, with the car manufacturer still unable to produce all the vehicles it intends to due to lingering component shortages. Photo by M 93, Wikimedia commons.