A drop in European sales of 7.6% dragged Renault global sales down 3.2% in the first six months of 2006, despite a 10.6% surge in markets outside the continent.
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Renault sold 364,371 vehicles or 27.7% of all group volume outside Europe across its Renault, Dacia and Renault Samsung Motors brands.
Group global sales fell to 1,315,385 vehicles in the first half, for a 4.1% market share.
In Europe, sales of the redesigned Clio line grew 44.7% and Logan sales – under both the Renault and Dacia brands – doubled to almost 124,000 units worldwide.
Announcing the Renault Commitment 2009 plan in February, Renault Group president and CEO Carlos Ghosn had said: “As the first year of our new business plan, 2006 will be a year of transition. On the one hand,we will be on the defensive in our markets because we have few new products and the competitive environment is challenging.”
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By GlobalDataOverall, in what it described as “contrasting performances”, Renault group H1 sales fell 3.2% to 1,315,385 vehicles sold.
Renault came second in Europe with a market share for cars and LCVs of 9.5%, and remained leader in France with 26.8% of the car and LCV market.
Dacia sales increased worldwide by 28.5% to 103,604 thanks to the Logan’s growing presence while, in Korea, Renault Samsung Motors volumes rose 3.3% to 57,710 units.
Last February, Renault reorganised into five regional groups to better take into account the specific needs of different markets, react more quickly, and maximise results in each region. The five are: France, Europe (outside France), Euromed, Asia-Africa and the Americas.
Announcing H1 results, Renault said the European market remains very competitive and more and more sustained by promotional offers [incentives]. It has grown 1.8% in the first half of 2006. Here, the automaker operates a “selective commercial policy”, prioritising the most valuable sales channels and limiting some volumes that are insufficiently profitable, such as short term rentals, notably because of the deterioration of the market for used cars.
This led to a drop in sales of 7.6% to 951,014 units in the first half of 2006 for the group, taking 9.8% of the European market. While the Renault brand dropped 9.3%, Dacia boosted sales 147% to 26,677 units, of which 20,124 were sold in Western Europe.
In the Euromed region, Renault Group sales grew by 16.5% in the first half of 2006, driven by strong growth for the Logan in Russia and Morocco where the cars are also built.
Renault brand sales grew 21.7% in the Euromed region.
In Russia, a market that grew 21%, sales leapt 194.4% to 30,864 vehicles, thanks also to the success of the Logan which is sold there as a Renault. The brand also progressed in North Africa (+11%) but sales dropped 6.5% in Turkey and by.3% in Romania.
Dacia sales in the region grew 19.3% in the first half with a slight drop of 4.1% in the brand’s native Romania compensated for by success in export markets, such as in Turkey where sales increased by 11%.
In the Americas, group sales increased 13.5% to 91,658 units thanks to strong advances in Argentina and Colombia.
In Argentina, described as “a dynamic market”, Renault sales increased 40.9% to 27,069 vehicles. In Colombia the increase was 39% thanks to the Logan, built locally since the end of 2005. In Brazil, Renault sales were stable in the first half of 2006 at 23,345. 82% of the cars sold by Renault in Brazil have flex-fuel engines.
Sales in the Asia-Africa region dropped slightly by 2.5% to 85,963.
Renault Samsung Motors, whose cars are essentially Nissan designs, boosted volume just 3.3% in South Korea to 57,710 while the Renault brand dropped by 11.5% in the rest of the region, notably in South Africa where the market is increasingly competitive.
In the second half of 2006, Renault will continue to implement its selective commercial policy, prioritising the most profitable market sectors.
In extremely competitive markets the priority will remain profitability.
Outside Europe, the group will pursue growth but expects global sales to remain stable compared to 2005.
Renault will launch updated Scénic MPV (minivan), and Trafic and Master vans in September and add a wagon version of the Logan in some markets from the end of 2006.
