$10,000 truth about electric cars: Tesla Model Y rivalling Renault Megane E-Tech's $10,000 price cut to be permanent

Renault has learned a valuable truth about electric cars ... they're too expensive.

The French maker slashed $10,000 off the price of its new Megane E-Tech electric SUV in May to $54,990 (before on-road costs), only months after the car was launched in Australia.

Now Renault has made the $54,990 starting point permanent after sales increased at the lower price.

Peugeot had a similar experience when it cut $20,000-plus off the price of its E-2008. Model year 2023 examples of that vehicle sold out in less than a week after the French brand swung the axe to the sticker price.

Renault Australia boss Glen Sealey said the lower prices was in direct response to the market’s response.

“Our job is to listen to the market and the needs of our customers to ensure we remain competitive,” he said.

“The decision to continue the existing price for Megane E-Tech was influenced by the increased demand for the vehicle we’ve seen across our network since its introduction.”

The Megane E-Tech’s price now undercuts the top-selling Tesla Model Y that starts at $55,900, but is still more than the value-packed BYD Atto 3 priced from $44,500.

The compact electric SUV uses a single electric motor making 160kW and 300Nm that is fed by a 60kWh lithium-ion battery. Renault claims a driving range of up to 454km.

Renault claims the Megane E-Tech can suck up 130kW of juice when connected to a DC charger, which can replenish the battery from 10 to 80 per cent in about 30 minutes.

Some of the standard equipment highlights for the Megane E-Tech are 20-inch alloy wheels, LED lighting, 12.3-inch multimedia screen and a 9.0-inch digital driver display.

Renault also announced it is making the seven-year warranty for the Koleos mid-size SUV permanent, in a hope to give sales a boost.

Sales of the Koleos are down more than 68 per cent this year compared to the first six months of 2023.

The Koleos is no longer the brand’s top-selling vehicle and has been supplanted by the Master van.