Renault’s new models perform well despite pandemic

Worldwide
Published:  27 April, 2020
Renault Captur. Credit: Yannick Brossard

The French automotive Group sold 672,962 units in the first quarter of the year, a 25.9% decline in a global market, down 24.6% year-on-year.

As Groupe Renault suspended its commercial and production activities in most countries during the month of March due to the Covid-19 pandemic, global sales dropped 25.9% to 672,962 units in the first quarter of 2020, compared with the same quarter of the previous year. In Europe, in a market down 26.2%, Group sales fell 36% to 321,756 units, while elsewhere sales declined 13.4% in the quarter. Nevertheless, new models launched in the second half of 2019 are said to be delivering good performances in some countries such as Russia, where the Renault brand recorded a 9.2% increase in sales thanks to the success of the newly launched Arkana, in a market up by 1.8%. In India, the Group said its Triber also enabled sales to increase 3.5% despite a 22.8% market decline, while in South Korea Group sales were up 20.1% thanks to the success of XM3 launched in February 2020, in a market down by 6.8%.

In the first quarter of the year, total Group revenues amounted to €10,125 million, representing a 19.2% decline, year-on-year. Revenues in Automotive, excluding AvtoVAZ in Russia, amounted to €8,591 million (-21.3%). According to Groupe Renault, this variation was mainly due to a decrease in volumes; -14.1 points. Sales to partners are said to have had a negative impact of -6.1 points due to the sharp decline in the production of vehicles and components for Nissan, Daimler and Opel. The negative -1.4 points currency effect has been mainly attributed to the devaluation of the Argentinian Peso and Brazilian Real. The price effect was positive by 2.8 points as a result of price increases to cover devaluations and product enrichment, according to the Group. Mix effect and the others effect weighed respectively for -1 point and -1.5 points. AvtoVAZ’s contribution to Group revenues amounted to €701 million in the quarter, down -8.6% after taking into account a positive currency effect of €14 million.