Dacia CEO identifies regulation-driven price hikes as primary industry threat

Katrin Adt, CEO of Dacia, has identified rising vehicle prices driven by European regulations as a primary challenge for the European automotive industry, rather than competition from Chinese manufacturers.

During an event in Milan, Adt noted that car prices have increased by an average of 40% over the last decade, with at least half of that increase attributed to additional investments required by new regulations. She emphasized that the shrinking volume in the European market is a result of these costs making vehicles less affordable, rather than the presence of brands like BYD, MG, or Geely.

Adt also addressed Dacia’s evolving brand identity, stating that the company is moving away from being labeled a ‘low-cost’ brand to being perceived as a ‘smart’ brand. This shift focuses on providing practical solutions and a high quality-to-price ratio. She noted that Dacia’s mission to provide accessible mobility is increasingly relevant as vehicle costs rise while consumer incomes do not keep pace.

In markets like Spain, where the Dacia Sandero has been the top-selling car for 13 consecutive years, the brand continues to maintain a strong position despite the broader industry's difficulties.