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Renault Reports Modest Sales Growth Amid Challenging Market Conditions
PARIS (Reuters) – French automotive giant Renault announced on Thursday that its sales grew by 1.3% in 2024, with a particularly robust performance in the fourth quarter, driven by recent product launches that helped mitigate earlier weak demand.
Despite this positive note, the overall sales growth marks a significant deceleration compared to the 9% increase witnessed in 2023. The global automotive industry has encountered considerable challenges this past year, largely due to inflation impacting consumer willingness to purchase new vehicles, alongside an influx of excess production from China saturating the market.
In contrast, Volkswagen, Europe’s leading car manufacturer, reported a decline in sales of 2.3% last year, as it faced difficulties in managing costs domestically and contending with a competitive price environment in China, its largest market.
Renault’s total vehicle sales reached 2.26 million, with an increasing focus on hybrid and electric cars contributing to a notable 6.1% sales increase in the last quarter. Notably, electric vehicles accounted for 9% of the group’s European sales throughout the year, increasing to 12% in the fourth quarter.
The Renault brand, which represents over two-thirds of the group’s total sales, saw electric vehicles comprise 16% of its European sales in the final quarter, according to Fabrice Cambolive, CEO of the Renault brand.
Looking forward, approximately 20% of Renault’s vehicle sales in the coming year must be electric to meet stringent new European Union regulations aimed at reducing carbon emissions.
The firm is set to release its financial results for 2024 on February 20.
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