Dacia is set to unveil details of its upcoming competitor to the Skoda Octavia within the next few months. The new model, internally known as “C-Neo,” is designed as a rugged, petrol-powered estate wagon aimed at undercutting the competition with a price tag below £25,000.
Expanding into the C-Segment
The C-Neo will be pivotal to Dacia’s strategy of growing its presence in Europe’s largest car market, the C-segment. Currently, this segment already represents 20% of Dacia’s sales, a trend boosted by the success of the Bigster SUV. Dacia plans to introduce a third C-segment vehicle in 2027, solidifying its commitment to this market.
CEO Katrin Adt highlights the Bigster’s success – with 67,573 units sold last year – as evidence that Dacia can thrive in the competitive C-segment. She emphasizes that each vehicle will have its own distinct purpose, with the C-Neo offering a different value proposition than the Bigster.
A Practical Alternative to SUVs
The C-Neo will be a stretched and lifted version of the Sandero, essentially a high-riding compact estate approximately 4.6 meters long. Dacia is deliberately targeting buyers who prefer traditional wagons over SUVs.
Patrice Lévy-Bencheton, Dacia’s product performance boss, explains that a significant portion of the C-segment market still wants “a lower driving position, a more efficient product [that is] less ostentatious.” This suggests Dacia is betting on a segment of consumers who want the practicality of a larger vehicle without the aggressive styling or higher price of many SUVs.
Why This Matters
Dacia’s move into the C-segment is significant because it challenges the dominance of established automakers in a high-volume market. By offering a cheaper, no-frills alternative, Dacia could disrupt traditional purchasing patterns. This strategy also demonstrates a broader trend: automakers are increasingly segmenting the market, offering vehicles tailored to specific consumer preferences rather than broad, one-size-fits-all solutions. The success of the C-Neo will depend on whether Dacia can deliver on its promise of affordability and practicality while still appealing to buyers who might otherwise choose a more established brand.
Dacia is positioning the C-Neo to meet a clear demand: an affordable, rugged wagon for buyers who don’t want an SUV. The upcoming details in the coming months will determine if this strategy can deliver another sales success for the Romanian brand.
