PARIS (Reuters) -A wave of value cuts by Tesla (NASDAQ:) is a “warning” for rival producers of electrical automobiles, the chief govt of French automotive maker Renault (EPA:)’s flagship model stated on Monday.

The model’s gross sales rose by 9% within the first quarter of the yr, indicating a restructuring technique specializing in essentially the most worthwhile fashions could also be beginning to repay after 4 years of declining revenues.

However Fabrice Cambolive, the CEO of the Renault model, stated Tesla’s value cuts would power the group to take a detailed take a look at its pricing coverage worldwide.

“We’ll analyse nation by nation, market by market, which degree of competitiveness we have to have to remain within the match,” he informed reporters.

He stated gross sales of the Megane electrified mannequin, considered one of its hottest, had risen sharply in March, with sturdy orders regardless of a really restricted discounting coverage.

“It is clear that (Tesla reducing costs) is a problem, beginning with the price aspect of issues. It is a warning that we’re ,” he stated.

Worldwide gross sales for the model reached 354,545 items within the first three months of the yr, the corporate stated on Monday.

The entire group, which additionally produces Dacia and Alpine automobiles and which is able to launch group-wide gross sales knowledge on Thursday, posted a 5.9% decline in gross sales in 2022, hit by the lack of the Russian market. Gross sales for the Renault model, which represents two-thirds of group gross sales, fell by 9.4% final yr, additionally recording their fourth consecutive annual decline.