The Renault brand retail sales dipped owing to supply chain issues for semiconductors. The company is positive about its recovery this year and getting net positive sales for the year of 2022.
It hasn’t been quite impressive last year for Renault, the French automaker struggled to break past in the positive territory as sales of passenger cars and light vehicles fell 4.5% to 2,696,401 units last year.
Renault Sales
Renault’s worldwide group sales fell for the third consecutive year in a row. This was majorly due to the supply chain issues of chips that most automakers are facing worldwide. Renault Chief Executive Luca de Meo said that the company is moving from the strategy of chasing volumes to chasing value.
Sales of the Renault brand actually dropped by 5.3% in 2021. However, it was the sales of its subsidiary brands that helped alleviate some pains. For e.g, sales of its low-cost Dacia brand increased by 3.1%. Similarly, Lada’s sales progressed by 0.3%. On the other hand, sales of Renault’s Alpine Sport model surged by a staggering 74% in 2021. In an official statement, the company said:
“The sales policy initiated in the third quarter of 2020, is leading to an increase in the share of sales in the most profitable channels”.
Fabrice Cambolive, the commercial boss of the Renault brand said that he expects said he expects sales under Renault to increase in terms of revenue per model in 2022.
The key regions of sale for Renault are the five European countries – France, Germany, Spain, Italy, and the United Kingdom. The share of the sales of retail customers in this country is 58%. This is up 6 points compared to the pre-pandemic levels of 2019.
Renault’s Push for Electric Vehicles
Just like other automobile players, Renault too has embarked on its electric car journey. The company said that it has been pushing the sales policy initiated during the third quarter of 2022. This has ultimately led to an increase in the share of its sales in the most profitable channels.
Last month, Renault disclosed its plans to enter into a joint partnership with China’s Geely Holdings. This will allow Renault to step once again in China after its exit the previous year. The two players shall be working together to produce hybrid vehicles.
With this deal, the French automobile giant will also work in expanding its presence in other parts of Asia. The company is also planning to revamp its struggling business in South Korea.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
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