Renault 2023 sales return to growth with focus on top models and markets By Reuters
© Reuters. Photos of the Renault Megane car were taken at the Brussels Motor Show in Belgium on January 18, 2019. REUTERS/Francois Lenoir/File Photo
Gilles Guillaume and Diana Mandia
(Reuters) – Renault said on Wednesday its full-year global sales rose 9% in 2023, marking a return to growth after four consecutive years of decline, and the French automaker said it was poised to continue its strong performance in 2024.
In morning trading renault (EPA:) shares fell 1.9% after Tesla (NASDAQ:) cut prices for its Model Y electric car in Germany, joining other European automakers in falling shares.
After selling a record 3.88 million units, including cars and vans, in 2018, Renault saw sales fall nearly 6% in 2022 as the company struggled with a shortage of semiconductor chips.
Renault’s sluggish sales were further worsened by its withdrawal from the Russian market.
To boost sales, Renault has scaled back its vehicle range and refocused on its most profitable markets and models under CEO Luca de Meo.
“We are regaining glamor (…) the design is improving and we see this in the conquest rates,” Renault brand chief Fabrice Cambolive told reporters. “The plan is to continue this level of performance in 2024.”
The return to growth shows that de Meo’s plans are starting to pay off. Although the group’s performance was below the 12% growth posted by Volkswagen (ETR:), Renault said its sales in Europe rose 18.6%, outpacing the industry’s 13.9% growth rate.
Europe accounted for 63% of sales in 2023, but Hyundai plans to grow outside of Europe by launching eight new global models by 2027.
In a client note, ODDO BHF analyst Michael Foundoukidis described Renault’s 2023 sales performance as “relatively strong” and said the automaker could outperform the market in 2024 “thanks to the numerous (model) launches planned for this year.” said.
The flagship Renault brand, which accounts for more than two-thirds of the group’s sales, saw sales increase by 9.4% in 2023, while low-price brand Dacia saw sales grow by 14.7%.
Renault added that the group’s European order book represents 2-1/2 months of expected sales at the end of December 2023.
Electric models accounted for 40% of Renault brand sales in 2023, up from 38% in 2022. Fully electric models accounted for 11% of sales.
Regarding supply disruptions due to the Red Sea attack, Cambolive said it “will have visibility over the next eight weeks.”
He added, “I don’t know what will happen after that.”
