Renault’s place as central Europe’s No. 2 car seller is in jeopardy according to Automotive News Europe. The French car maker anticipates it will lose market share because of European Union expansion. As tariffs are normalised in the new EU member states, Japanese and Korean car makers will no longer pay higher tariffs than EU-based manufacturers.
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So beginning May 1, 2004, Asian car makers will pay much lower tariffs on imports into the 10 new EU member states in central Europe, the Baltics and the Mediterranean.
Renault has 10.9% of the overall central European market, placing it behind leader Skoda’s 16.6%. Renault also has 10.7% of Poland, central Europe’s largest market. But it fears those numbers will shrink. “Our market share has probably reached its peak,” said Philippe Jombart, chief executive at Renault Polska, the French carmaker’s Polish unit.
Renault sold 75,439 cars in the region, including 25,903 in Poland, during the first eight months this year.
Asian car makers pay import tariffs ranging from 15% in Slovenia to 35% in Poland, but the rate drops to 10% starting next May. That’s when the Czech Republic, Hungary, Poland, Slovakia, Slovenia and five other countries join the EU.
Jombart said EU membership also will open up central Europe to more used cars. Polish, Czech Republic and Slovakia governments have tried to discourage imports by charging high fees on used car imports to protect car makers building vehicles in their countries.
Renault also fears it will lose sales to some European rivals actively assembling cars in the region.
PSA/Peugeot-Citroen and Toyota will introduce a joint-venture minicar built in the Czech Republic in 2005. Meanwhile, Fiat’s new Panda, which is produced in Poland, is selling well.
