Renault changes focus and axes underperforming models

French maker takes the axe to its Australian range as three models bite the dust. A new SUV could turn around its fortunes, though.

Renault will axe three models as it changes its focus in the face of sliding sales.

The French brand’s local arm will no longer sell the Clio small car or Zoe electric hatch in Australia.

Both cars were on borrowed time. Renault sold less than 900 Clios and only five Zoes in 2019. Only 60 Australians have bought the Zoe since it first went on sale in 2018.

The Renault Zoe failed to take off in Australia.

Renault Australia product planning manager Charly Clercin says electric cars are still a “curiosity in Australia” and it’s hard to justify selling the vehicle in such low numbers.

Part of the problem could also be the car’s high entry point. Priced at about $50,000 before on-road costs, the tiny Zoe couldn’t compete with cheap petrol-powered rivals such as the Mazda2 and Toyota Yaris.

Renault won’t bring the new Renault Clio to Australia.

Renault’s axing of the Clio follows the decision by other brands such as Ford, Hyundai and Honda to not offer a micro hatch in Australia anymore.

Sales of small passenger cars have fallen off a cliff the past few years as buyers head towards SUVs.

The only conventional passenger car to be offered by Renault will be the cult favourite Megane RS hot hatch, which the brand has confirmed will be updated in 2021.

Despite the poor showing Renault has committed itself to the Australian market.

The Korean-built Renault Arkana will replace the Kadjar in the brand’s local line-up in 2021.

Renault Australia chief Anouk Poelmann says that despite the dramatic change in the Australian motoring landscape in the past 12 months, Renault is “here for the long haul”.

But the brand admits there was discussion about its future following the departure of Holden.

Renault has now committed itself now to being an SUV and light commercial vehicles brand as that is where the growth is.

It also announced the recently launched Kadjar SUV would make way for the new Korean-sourced Arkana SUV.

The Arkana is a more style focused SUV.

The brand cited the closer production facilities and the cost savings associated with a free trade agreement between Australia and South Korea as some of the main reasons behind the switch.

Sporting a coupe-like silhouette the Arkana will go head-to-head with vehicles such as the Mazda CX-30, Volkswagen T-Roc and Kia Seltos according to Renault.

“The all-new Arkana is a new generation of SUV for Australia and destined to become a segment breaker with its distinctive design, combining the creature comforts of an SUV with sedan driving dynamics,” said Mr Clercin.

“The all-new Arkana will come loaded with technology, comfort and five-star safety. With its distinctive coupe SUV design, it has all the elements to be a success here in Australia.”

Renault is aiming to launch the Arkana locally in the second half of 2021.

Renault will also launch the new Captur SUV at the start of 2021, with the brand aiming for a sub-$30,000 entry point. Renault will also update its mid-size Koleos SUV in 2021.