23 March 2006

South Africa's automotive industry will be in for some extra va va voom if French manufacturer Renault decides to build its bargain car, the Logan, in the country.

Europe's cheapest car, the Logan, launched in September 2004, has been dubbed the "€5 000 car" (this translates to about R38 000). Initially designed for the low-cost Romanian market, the car has proved popular across Europe, with Renault forecasting sales growth from about 175 000 units in 2005 to 1-million by 2010.

Right-hand drive
Renault currently markets the car in Eastern Europe, Russia and North Africa, and plans to expand into the developing world.

The 1.4 litre no-frills sedan is marketed under the Dacia brand in some countries. Dacia was the state-owned Romanian company that Renault acquired in 1999.

The car is currently offered only in a left-hand drive version, although construction of a right-hand drive version will start in India in 2007.

According to Doris Roberts, Renault SA spokesperson, demand for the right-hand drive car will determine whether the company builds the cars in South Africa in addition to India.

Renault South Africa MD Roland Bouchara told the Business Day earlier in March that "there is a real chance that it could be made in SA, although we cannot say, at this stage, that there is a good chance."

Whether locally assembled or imported, the Logan will be soon be seen on South Africa's roads. According to Motoring.co.za, Renault SA has confirmed that the car will be on sale in the country by the end of 2007.

Sales growth
Renault has pursued an aggressive expansion strategy in South Africa in the past three years, growing its dealer network from 40 to almost 70 branches.

Renault accounts for 5% of the market in South Africa, a share that they want to double by 2009.

Should the company begin manufacture of the Logan in South Africa, it would increase the country's vehicle production base and, it is hoped, help to bring down the cost of new vehicles.

Even after import duties and VAT, there's little doubt that the Logan would be the most affordable car on offer in the South African market.

SouthAfrica.info reporter

	Renault's Logan, the '€5 000 car' (Photo: Renault)

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