Renault Group sold 599,027 vehicles in the third quarter of 2021, a decrease of 22.3% compared to the same quarter of 2020, as the chips shortage took its toll.
Renault estimates its production loss due to the lack of components for the third quarter at around 170,000 units. Despite reduced visibility for the fourth quarter, the group anticipates a loss close to 500,000 vehicles for the year (more than double what it forecast last month).
Group revenues for the third quarter amounted to €9 billion, down 13.4%.
On a positive note, Renault said its E-TECH line up of electrified vehicles accounted for 31.3% of Renault brand’s passenger car sales in Europe in the quarter.
The company also said the renewal of the Dacia line up is a success, driven by New Sandero and New Duster. In the third quarter, Sandero was the best-selling car in Europe, Renault said.
The company also said that the group’s order portfolio in Europe at the end of September 2021 stands at a record high for 15 years and represents 2.8 months of sales.
Despite the increase in estimated production losses for the year, Renault Group confirmed its guidance to reach a full year group operating margin rate of the same order as the one of the first half. The group is also targeting to achieve a positive Automotive operational free cash flow, excluding change in working capital requirements, for the fiscal year.
Renault Group also confirmed that it is on track to meet its 2021 CAFÉ (EU) target.
“The actions taken to further lower costs and maximize the value of our production allow us to confirm our guidance for the year despite the deterioration in components availability in the third quarter and reduced visibility for the fourth quarter,” said Clotilde Delbos, Chief Financial Officer of Renault Group.