Renault Group has posted has posted a 13% year-on-year (YoY) increase in revenues in the third quarter of 2016, which came to €10,546 million (Rs 76,680 crore), a 16.7% increase at constant exchange rates.
26 Oct 2016 | 4907 Views | By Autocar Professional Bureau
Renault Group has posted has posted a 13% year-on-year (YoY) increase in revenues in the third quarter of 2016, which came to €10,546 million (Rs 76,680 crore), a 16.7% increase at constant exchange rates.
Automotive revenues came to €9,989 million (Rs 72,630 crore), up 13.5% thanks to an increase ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
Renault Group has posted has posted a 13% year-on-year (YoY) increase in revenues in the third quarter of 2016, which came to €10,546 million (Rs 76,680 crore), a 16.7% increase at constant exchange rates.
Automotive revenues came to €9,989 million (Rs 72,630 crore), up 13.5% thanks to an increase in volume (+10.7 points) and pricing (+4.6 points). This last effect still benefits from price increases in emerging countries to offset currency declines, but as well from recent launches. Growth in sales to partners (+1.8 points) reflects the positive momentum of the company’s CKD activities in Iran and China, as well as the increased production of vehicles to the partners in Europe.
The euro’s gain against a number of currencies, including the Argentinean peso and the British pound, resulted in an unfavourable impact of 3.8 points. Product mix was negative in the reported quarter (-2.5 points), mainly due to the impact of Kwid in the group’s sales.
Sales financing (RCI Banque) reported revenues of €557 million (Rs 4,050 crore), up 4.3% compared with the third quarter of 2015. The number of new financing contracts rose by 10.0%. Average performing assets increased by 17.5% to €33.9 billion (Rs 246,500 crore).
Group sales up 16% to 721,741 units
In a global automotive market up 5%, Groupe Renault’s sales rose by 16% to 721,741 units. The group’s market share increased by 0.3 points to 3.3%.
The group continued to enjoy traction from the renewal of its range in a buoyant European market (+5.3%). Its registrations rose by 11.3%, with market share gaining 0.5 points to 9.5%.
In France, the group outperformed the market with a 3.9% rise in sales to
123,000 vehicles in the quarter. The group placed five vehicles in the Top 10 best-selling passenger cars at the end of September, with Clio IV coming in at number one and Captur leading its segment. Sandero remains the best-selling car to retail customers, at the end of September and for the third quarter.
Internationally, despite turbulence in Brazil, Russia and Algeria, group sales increased by 21.5% in the third quarter. The group increased its market share in each region.
In the Africa, Middle East and India Region, the group’s sales were up by 85% as market share gained +2.7 points to 6.4%.
In Iran, Groupe Renault confirmed the trend of the first half of 2016, with deliveries up 135.5% thanks to the success of Logan and Sandero. The group’s market share increased by 2.9 points to 9.6%.
In India, the market grew 17% while Renault sales were multiplied sevenfold thanks to the success of Kwid. 82,771 Kwids have been sold since the start of the year, including 34,350 in the third quarter alone.
In North Africa, Groupe Renault sales rose by 13.6%, in a market down 15%. Market share increased by 10.6 points to reach a record 42.2%. In Algeria, the market continues to be weakened by the current regulations setting import quotas. Within this context, the group consolidated its lead in the country with a market share of 63.1%, a gain of 29.2 points. The three best-selling vehicles were Symbol and Sandero – both of which are manufactured at the Oran plant – and Logan.
In the Americas Region, the group’s market share increased by 0.2 points to 6.9%.
The Renault brand continued to benefit fully from the recovery of the Argentinean market, with its sales up 21.7% in a market up 12.7%. In Brazil, in an automotive market down sharply (-17%), the group held up well, increasing its market share by 0.4 points to 7.8%. The end-2015 launch of Duster Oroch and the upcoming launch of Alaskan are enabling the group to expand its offering and position itself in the pick-up segment.
In Eurasia, the group’s market share improved by 0.7 points to 12.4%. In Russia, where total industry sales fell by 15.1%, Renault held up well, registering a limited 4.7% decline. Market share expanded 0.9 points to 8.3%, due to the successful launch of Kaptur, for which more than 7,500 orders have been placed since its launch in June 2016. In Turkey, the group was impacted by the market decline, with sales down 23.1%.
In Asia Pacific, the group’s sales rose by 25.6% in a market up 11.5%. In South Korea, the group’s largest market in the region, Renault Samsung Motors posted 24.5% growth, driven by the success of its new SM6 sedan and its QM6 crossover. Market share expanded 1.9 points to 6.3% over the period. In China, pending the upcoming launch of Koleos, 10,686 Kadjar have been sold since the model’s introduction in March, including 6,032 in the third quarter alone. The sales network, which currently encompasses 125 dealerships, is expected to grow to 150 outlets by the end of the year.
Sales under the Renault brand grew by 8.1% thanks to the success of new Mégane, Kadjar, Espace and Talisman models. Clio IV remains the second bestselling vehicle in Europe and Captur was again the leading crossover in its class. In Europe, in the electric vehicle segment, Renault’s market share came to 20.8% in the third quarter, while ZOE posted a 22.4% growth.
Sales under the Dacia brand increased by 22.1%, due chiefly to Sandero Stepway and Duster.
Outlook for 2016
In 2016, the global market is expected to record growth around 1.7% compared to 2015. The European market, as well as the French one, are now expected to increase by at least 5%.
Outside Europe, the Brazilian and Russian markets are expected to decline: -15% to -20% for Brazil and -12% for Russia. On the contrary, China (+4% to +5%) and India (+7% to +9%) should pursue their positive momentum.
Recommended: Mitsubishi Motors joins Renault-Nissan Alliance