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Dacia CEO: EU Rules Force Us to Divert 25% of R&D from Customers

Dacia CEO: EU Rules Force Us to Divert 25% of R&D from Customers RUSSPAIN.com © russpain.com
Dacia CEO: EU Rules Force Us to Divert 25% of R&D from Customers © russpain.com
Dacia CEO Katrin Adt says a quarter of the company’s development resources are spent meeting EU regulations, not addressing customer needs. She argues for stable rules as Dacia pursues a pragmatic electrification strategy in a changing market.

Katrin Adt, CEO of Dacia, puts a number on the impact of European regulations: about 25% of the company’s engineering development resources, in budget and capacity, goes to regulatory compliance instead of directly addressing customer needs. That estimate concerns development resources, not a quarter of Dacia’s overall corporate budget or vehicle prices. In an interview with 20minutos, Adt said the burden is shaping the brand’s choices as it navigates electrification and stronger competition from China.

Regulation Over New idea

Adt said Dacia has already implemented roughly 100 regulatory requirements and expects around 100 more before the end of the decade. A separate industry account puts the expected number at 107. The rules cover emissions, while safety equipment and driver-assistance systems make up other requirements. They include mandatory speed-warning functions that must also let drivers deactivate them. Adt’s wider concern is that frequent changes make it harder for manufacturers to plan products and investment over the long term. “If we could use this capacity to do what customers really need, it would be a tremendous help,” she said, calling for a more stable regulatory structure.

Adt has also been quoted as saying regulation accounted for about 40% of Dacia’s price increases over the preceding five years. That is separate from the 25% development-resource estimate: one figure concerns price growth, the other engineering capacity and budget. Her basic argument is that Dacia builds cars for customers, not regulations. Safety systems, she said, must be developed or sourced, then manufactured for integration into vehicles. Their added weight can increase energy consumption, putting further pressure on emissions performance.

For a brand built around affordable, practical cars, the cumulative cost of mandatory equipment matters. Dacia’s product approach emphasizes impressive customer benefits and affordability, while compliance systems bring engineering and procurement costs, followed by integration and testing, whether or not buyers actively seek them. Those fixed obligations can weigh more heavily on the economics of smaller, lower-priced vehicles than on more expensive models. Adt’s criticism concerns the combined engineering and production burden of developing rules, not one specific requirement.

Electrification on Dacia’s Terms

Dacia continues to pursue electrification, but Adt has rejected a fixed timetable for becoming an all-electric brand. The company is still developing electric concepts, including the approximately three-metre Dacia Hipster, while maintaining a technology-neutral approach. Its plans include battery-electric vehicles, alongside combustion-engine and alternative-fuel options where regulations permit and customers want them.

Adt says not all drivers are ready or willing to switch to fully electric cars. “We focus on following the customer, because we see there are different paths,” she said. For those who need more range or larger vehicles, Dacia aims to provide alternatives suited to their needs and regulatory requirements. LPG (liquefied petroleum gas) remains part of that offer and has found strong acceptance in markets such as Spain.

This multi-energy philosophy is evident in the launch of the new Dacia Striker, an SUV designed to offer several powertrain options. The model reflects Dacia’s strategy of adapting to changing EU emissions rules without forcing customers into a single technology.

Facing Chinese Competition

The rise of Chinese automakers in Europe is another challenge Adt does not underestimate. She acknowledges that the competitive field has changed dramatically but believes Dacia’s main benefit remains hard to match. “We see competition we haven’t seen before, no doubt,” she said, pointing to the brand’s residual values and entry prices, alongside its established technology and efficient engines.

Adt argues that these factors make Dacia’s lineup “a unique offer” in the European market, even as new players arrive. She also points to the brand’s commercial performance, saying its focus on value for money and its basic principles have helped it compete successfully.

Spain’s Strategic Role

Spain is a impressive Dacia market, both for sales and for the popularity of LPG. Adt said it is one of the brand’s largest and most impressive European markets, with the highest share of LPG vehicles among Dacia customers.

In the future, Adt is confident Dacia will continue to evolve without losing sight of what has driven its growth. “We will be electrified, we will have moved or found our place in the C-segment, but we will remain true to our DNA,” she said.

Context and Outlook

Dacia’s position reflects a wider tension in Europe’s car industry: balancing regulatory compliance with affordability and customer-focused development. The EU’s emissions structure also has direct commercial consequences for manufacturers, with penalties linked to fleet emissions above applicable targets. Political debate continues over the 2035 structure and possible compliance flexibility; proposals discussed in that debate are not settled rules. For Dacia, the immediate challenge is meeting requirements on emissions and safety while preserving the price-conscious approach on which its business is built. The coming years will test whether manufacturers can adapt without losing the qualities that made their vehicles attractive to customers.

Frank Miller RUSSPAIN.com
Editor

Frank Miller

Frank Miller covers the automotive industry, transport and Spanish road regulation for RUSSPAIN.COM