Renault and Peugeot in the News
Battle ground is the best for brand’s comparison where you can compare two brands in terms of their features, services, offerings and other basic functionalities. Brand of any field can be easily compared with this platform. Among the car manufacturers in the market, people are found to be in somehow confusion that which brand car or spare parts of which brand will be perfectly suitable for them to have a comfortable riding experience. In battleground, however, such confusion will merely solve in an easy way. Two leading brands of the car manufacturing viz Renault and Peugeot are widely popular among the people and are in news today because their production and selling has reached down from the past year’s production and marketing.
From the March of 2011, the production or manufacturing as well as selling of both these brands dropped down to almost 30% due to shrinkage of the French market. It is well-known to everyone that the government authority of France phases out a new subsidy for the car manufacturer for the replacement of older cars by new one and this action of the France Government has laid to worsen the lethargic demand of the cars all over the world, affecting their production and selling.
CCFA Report on New Car Sales
As per the report of the French car manufacturing association i.e. CCFA, the main reason behind the declination of Renault and Peugeot new car sales was the increment in the petrol and diesel hiking prices all over the world. With increasing diesel and petroleum hiking prices, it is not affordable for a middle class family to own a personalized car and this led to the sales of new cars to decline 20% as compared to the previous years selling. Such increment in diesel and petrol prices also shrank the European and German vehicles standard manufacturing by 24% to 197,033 vehicles as compared to the previous years manufacturing.
Effect of Manufacturing in Renault and Peugeot
Both leading brands as a car manufacturer has notified a decline in their new car sales. Renault experiences a net drop of around 30% to 42,908 cars while Peugeot notifies a total decline of around 33% to 59,920 from last month. These two car manufacturers actually struggled more than other car makers in the world because both took rivalry action in their production against each other. French market analyzers also says that there will be around 8-10% drop in the new car sales this year because sales of other new cars like Hyundai and Kia brands are highly recommended with total increase of 43% and 29% respectively.
Otherproblems of Renault and Peugeot
Both car manufacturers i.e. Renault and Peugeot are forced to lower their fees on vehicles services like repaint and maintenance services in France. French Association believes that the market till June 2012 will be unfavorable for both these brands. Such actions like lowering of manufacturing and selling prices on such service will somehow be helpful for these companies to increase their productivity in second half season.