Renault Group Reports Slight Increase in Global Sales for First Half of 2023

On July 23, the French automotive manufacturer Renault Group announced a slight year-on-year increase of 1.3% in its global sales of passenger cars and light commercial vehicles for the first half of 2023, reaching 1,169,773 units. The Renault brand saw a 2.7% increase in global sales, totaling 808,000 units, while the Dacia brand experienced a 0.7% decline, with 356,000 units sold. The group indicated that global sales growth for passenger cars and light commercial vehicles stagnated in the second quarter, as a significant drop in demand for vans in Europe completely offset the recovery in the passenger car market. Renault had already issued a warning last week regarding lower-than-expected sales in June. Despite launching several new models during this period, the global sales for the second quarter still saw a slight decline of 0.1% year-on-year, compared to a 2.8% increase in the first quarter. Ivan Segal, Global Sales and Operations Director of Renault, stated, 'Throughout the first half of the year, we have witnessed increasingly fierce competition in the European commercial vehicle market. The sluggish market demand and uncertain economic environment have undoubtedly prompted companies to delay some procurement plans.' It is noted that the Renault brand accounts for 70% of Renault Group's total global sales. Although global sales of Renault passenger cars grew by 8.4% year-on-year in the first half, mainly due to strong performance of the Clio model in Europe, the global sales of vans and light commercial vehicles, which make up one-fifth of total sales, plummeted by 29%. This downward trend was exacerbated by unfavorable base effects and product updates. However, global sales of electric vehicles under the Renault brand surged by 57% year-on-year, far exceeding the market growth of 25%, thanks to increased sales of the R5 model in France, Germany, and Spain. The launch of the new electric model A290 from the high-performance Alpine brand also contributed to an 85% year-on-year increase in global registrations for the brand in the first half. Ivan Segal expects that the Renault brand will regain market share in the commercial vehicle sector in the second half of the year. He added that the overall global sales growth for the Renault brand would be 'on par' with the first half of the year, while achieving double-digit growth in markets outside of Europe. It is reported that over 70% of Renault Group's sales come from the European market, which shields it from the disruptions caused by U.S. tariffs but also makes it more vulnerable to the slowdown of the European economy, especially amid increasing competition from Chinese automakers. To seek higher growth rates, the Renault brand has launched new models in markets such as Latin America, Turkey, Morocco, and South Korea, driving a 16.3% year-on-year increase in sales outside of Europe in the first half. Currently, Renault Group is temporarily led by CFO Duncan Minto, who is actively seeking a long-term CEO to succeed Luca de Meo, who left this month. The group will announce its complete financial report for the first half of the year on July 31. Last week, Renault Group also lowered its expectations for operating profit margins and free cash flow for the full year 2025.