Dacia rules out city car

Renault-owned Dacia has confirmed that it will not launch a budget-minded supermini aimed at the Volkswagen up! and the Fiat Panda in the foreseeable future.  The announcement puts an end to rumors that claimed an entry-level Dacia similar in size to the city-friendly Renault Twingo was just around the corner.  

Speaking with trade journal Automotive News, Carlos Tavares, Renault's Chief Operating Officer, explained that is he satisfied with Dacia's current seven-model lineup and wants to avoid having too many cars that overlap.

"We need to be communicating the brand rather than fragmenting our marketing dollars on too many models. Dacia's brand awareness is still quite low," said Tavares.

With a 6.3-percent market share, Dacia is the fifth most popular car manufacturer in France.  European sales have increased by an impressive 700 percent since 2005 but the firm only represents 2.3 percent of the new car market  The future looks bright, however, as Dacia sales throughout Europe grew by 18 percent to 90,000 cars in the first  four months of this year.

Instead of investing in new models, the Romania-based company will invest in expanding its presence in the north of Europe.