Renault First-Year Sales Down 1.9%, Due to Europe Slump image

During the first half of the year Renault’s sales dropped 1.9%, as the loss in Europe offset the increases abroad.

Renault’s deliveries fell to 1.3 million units from 1.33 million in 2012 and the automaker predicts that industrywide sales in Europe will drop 5% this year. Renault also reduced its expected 3% growth in global auto market for 2013, to 2%. The company has begun to focus on South America, North Africa and Russia to increase sales and reduce its reliance on Europe, where auto demand is to reach a 20-year low.

“These are good results,” said Florent Couvreur, an analyst at CM-CIC Securities with an accumulate recommendation on Renault stock. “These sales show they have a strong geographical mix, as they managed to increase their global sales in the second quarter, despite the slumping European market.”

The Renault brand reported sales down 4.6% to 1.06 million units, Dacia increased 17% to 211,438 units and Samsung Motors fell 12% to 29,136 units. Sales in Europe were down 7.3% to 656,580 vehicles, while deliveries outside the region increased 4.3%.

The French automaker has started to upgrade its lineup to attract more customers, including the Captur, Dacia Duster compact SUV, new Renault Clio hatchback, Dacia Sandero hatckaback and Dacia Logan wagon and sedan. During the first half entry-level vehicles accounted for 40% of the automaker’s deliveries, offering the company a ‘global advantage,’ according to Jerome Stoll, head of group sales.

Source: Bloomberg