Renault reviewing prices worldwide after Tesla cuts

French carmaker Renault (RENA.PA) is reviewing its pricing policies of electric cars worldwide to ensure it stays competitive after a wave of price cuts by U.S. rival Tesla Inc (TSLA.O), a top executive said on Monday.

After slashing prices several times in the United States, Tesla on Friday cut prices in Europe– including on Renault’s home turf of France – as well as Israel and Singapore, expanding a global discount drive it began in China in January.

“We will analyse country by country, market by market, which level of competitiveness we need to have to stay in the game,” Fabrice Cambolive, the chief executive of the Renault brand, told reporters on Monday.

The brand’s sales rose 9% in the first quarter of the year, indicating a restructuring strategy focusing on the most profitable models may be starting to pay off after four years of declining revenues.

Cambolive said the rebound had extended into April, adding however that Tesla’s price cuts were a wake-up call for competitors.

He said sales of Renault’s Megane electrified model, one of its most popular, had risen sharply in March, with strong orders despite a very limited discounting policy. But the model now costs as much as its main Tesla competitor.

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