The French carmaker Renault SA announced its first quarter revenue has jumped 13.7 percent thanks to the ongoing European market recovery, which compensated for losses elsewhere.
The European market upturn, which has been expected for six years after the slump that led to two-decade low sales figures, is finally showing its face this year, buoying the financial results of Renault – which has been bleeding in Russia and in other emerging markets. For the January to March period, the sales soared to 9.39 billion euros ($10.14 billion) compared to 8.26 billion for the same period of 2014, according to a company statement. The firm also moved to lift its European market forecast for the full year. Renault said its positive result was motivated by the success of new models such as the new generation Clio subcompact and all new Captur crossover – posting a sales increase of 9.9 percent across the European region, a better result than what the overall market has accomplished. Thanks to the continental recovery, “the success of new models in Europe compensated for the downturns in the Russian and Brazilian markets”, commented the company, adding its full-year prediction for Europe has been raised from 2 percent to 5 percent.
The European recovery has taken full effect in March, with mass-market brands such as Renault joining the premium performers with strong delivery growth – while the sales of entry-level “crisis cars”, including its affordable brand Dacia have been slowing down. For the first quarter, global sales only soared by 0.8 percent, battered by the crisis-laden Russian and South American markets.