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The Business Car Files: Dacia

Date: 14 December 2023   |   Author: Martyn Collins

Luke Broad, who has been Dacia UK brand director since October 2021, talks about the manufacturer's fleet deals and future plans after 10 years in this country.

We first talk about how the brand has changed, but remains the same high-value prospect, and ask if Broad thinks Dacia cars are now even more attractive to the fleet market.

He says: "We're certainly not anti-fleet, we want to work with our fleet customers and our fleet prospects. We want to do it in a very Dacia way, because the margins and the business model is optimised, and we don't necessarily have the flexibility in terms of pricing that our rivals and other players in the market do. 

"I think with the introduction of Jogger, particularly with the hybridised powertrain, we should see a lot more interest from fleet customers in this product. We're not seeing the high demand yet, but if any car is going to generate that demand, it's the Jogger Hybrid." 

Broad doesn't believe there's any particular area of the fleet market that Dacia is particularly keen on, instead it's just the case of the right product, right place, and at the right time. He says: "We're not going to go out proactively hunting for this business, but we get contact all of the time, and where we can have something of mutual benefit to both parties, we'll go for it. 

"A great example of that is the South Central Ambulance Charity, they purchased 45 Dusters from us, that have been properly converted into First Response Vehicles. We worked really hard with their teams to make sure the conversion, the fit, the equipment and the finish, was perfect for their needs. They carry out really important work, and they have to rely on these cars, we've got to make sure that when they turn the key - they start, and they deliver! 

"It is fleets like this, I'm really proud to be involved with. It is more of these deals that I'd like to explore. 

"In terms of user choosers, people working for other businesses, and perhaps company cars, for me - I say yes, why not. However, within those markets there is a huge choice. If people are wanting Jogger on company car lists, we would definitely consider this. To answer your question in a short way, we're not out there hunting, we're taking each fleet deal on its own merits really. 

"We're getting more and more Jogger Hybrid fleet business demonstrators coming through. Our colleagues in the fleet department are often taking vehicles around the country - making sure fleet customers can touch, feel, and experience them. For a car like Jogger, that's really important, because you can do all the research on the website - but it's not until you've got in this car, and experienced the roominess, that you'll properly understand what it's about. The Jogger Hybrid could be a great option for fleet customers.

Broad tells us that Dacia has really good market coverage, the Sandero in the B-segment, the Duster in the B+-segment, and now the Jogger in the C-segment. He says: "We've tried to explore fleet avenues in the past, but for various reasons with Duster and Sandero, we've only done a bit of fleet - although we could do more. Historically, we've found the discounts required, aren't something we can necessarily honour in order to get on to these lists and to open up these opportunities. 

"One of my major challenges, is to have our brand appearing on more people's shopping lists. We don't have multi-million-pound marketing budgets, we're very Dacia in that regard, so we can't be on TV once a month. So, the way we do it is, I set the challenge to the team that for every pound I give them, I want £10 back. Which I'm sure frustrates them sometimes, but it's a very clever way of creating traction. 

"We've been helped with the new brand identity, because it's such a marked change, and so different to the Dacia of old. We're really seeing people sit up and take notice, saying 'this is new, I've not seen this before. That looks stylish!' Just by changing the logo, it's generated such a positive impact, without having to spend millions on TV campaigns and things like that. I think with fleet customers, it will generally follow the retail reaction to the brand, the brand awareness, and grow naturally. 

"With the Jogger, we're specifically quoting end of 2023 deliveries, because, on the Hybrid, the demand across Europe has been pretty strong. In the UK, our mix is 10% stronger than for Europe. So, demand has been great, but that has led to extended lead times. 

"Whether you're a fleet or retail customer, you want the best 'bang for your buck,' so with all the equipment you tend to get on the higher trim levels, and when I look in the fleet channel where we sell, it basically replicates what we sell in retail. On the Jogger it's about 75%.

"What the team and I are focussed on, is just doing the basics, but doing them well and we genuinely don't chase volumes at any cost. That means our dealers don't have targets - they are not renumerated in terms of volumes. They sell what they sell, and the onus is on me and the team to make sure they get the enquiries, and to make sure they're converting those enquires at a good level, and they're looking after our customers whether they're fleet or retail. If that means we grow our fleet mix by 10-15%, I'd be pretty happy with that."      



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