Renault sees worldwide sales slowing amid China, Russia, South America problems image

The French automaker has predicted global auto industry deliveries will most likely soar just one percent throughout the year, down from the previous forecast of two percent.

The write-off is due to the latest developments during the first six months of the year in regions such as China, the world’s largest auto market, corroborated with steep drops in Latin America and Russia. Renault has been expanding towards emerging markets in order to shed reliance on its home continent of Europe, but the plan has been impacted by the major negative developments in Russia, Brazil and Argentina. The company stood by its initial projection for a 5 percent growth across the auto industry in Europe for the year, with the group’s market share expanding thanks to new model introductions. “The strengthening of our position in Europe, combined with the many products launched in 2015, confirm our ability to speed up growth in the second half,” commented in a recent statement the company’s chief performance officer, Jerome Stoll.

During the first half of the year, Renault deliveries soared 0.7 percent, with a tally of 1.38 million cars and light commercial vehicles, up from 1.37 million during the same period last year. In the first six months, sales in Europe jumped 9.3 percent, while the Americas registered a steep drop of 21 percent and the Eurasian region, which includes Russia, slid 10 percent. The namesake Renault brand saw sales inching up 5.2 percent while the affordable Dacia brand had a 5.4 percent decline, taking its market share of group sales down to 39 percent from 42 percent last year.

Via Automotive News Europe