Agreement between the brand and dealers is valid for two months for units already at the stores
By Alzira Rodrigues | 10/19/23| Translated by Jorge Meditsch
Renault will sell its entry model Kwid directly to the common consumer by the direct sales price. Therefore, the compact model becomes up to R$ 7.2 thousand cheaper, with a price close to the asked during the government’s discount program last June and July.
In Brazil, direct sales with the invoice issued directly by the manufacturer are limited to companies like rentals and fleet operators, taxi drivers, rural producers and disabled persons.
Renault informed that it has an agreement with the dealer net to sell the Kwid directly to common consumers for two months, and only cars already in dealers’ stocks. The manufacturer will buy back these cars and sell them directly to the consumer. The dealer will receive a commission, but lower than the normal margin.
There is a brand operating in Brazil exclusively with direct sales: the Chinese GWM, which established a deal with its dealers authorizing this practice. Renault issued a note this Thursday, 10/19, informing that all orders will still be made through the dealerships.
In June, Kwid’s suggested price was R$ 68,990.00. At the time, the Kwid Zen could be bought for up to R$ 10 thousand less, R$ 8 thousand due to the government incentive and the rest sponsored by the manufacturer.
The current action indicates that the automotive retail sector faces difficulties. Direct sales are on a high while the stores’ businesses are weak, according to sources from the dealer sector. In June and July, pushed by the discount program, the Brazilian automotive market grew by 38% from the average daily sales in the previous months. During this period, the Kwid was a success, growing almost three times the market average”, said Gustavo Ogawa, Sales and Net director.
For the executive, this showed the need for an additional push to increase sales, and that’s why Renault is innovating to improve its dealers’ businesses. “We adopted the direct billing by the manufacturer for retail customers together with our net, ensuring the best price for them”.
The Kwid is one of the most affordable models in the country and has only one competitor in its price level, the Fiat Mobi. Its flex-fuel engine is the most economical offered in the market, according to the Brazilian Vehicle Labeling Program (PBEV).
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