French car maker Renault SA (RNSDF.PK) reported Friday a 6.3 percent decline in vehicles sales for the year 2012 as good growth in international sales could not offset a sharp fall in European sales. For fiscal 2013, the company projects that the global market would grow 3 percent, while the European market would fall at least 3 percent.
In the year 2012, Renault sold 2.55 million vehicles worldwide, compared to last year’s 2.72 million vehicles.
Sales in Europe fell 18 percent from last year to 1.27 million vehicles, as France recorded a 20 percent decline in sales, and sales in Europe excluding France fell 16.5 percent. Against a backdrop of market crisis, and efforts to defend margins and restructure the sales offering in the UK, the company had market share of 9.1 percent, 1 point less than last year.
Renault noted that it is highly exposed to markets in France and Southern Europe, and brand sales have suffered from the significant downturn on these markets.
Outside Europe, the company set a new record with sales of 1.28 million vehicles, 9.1 percent higher than the prior year, mainly on the strength of Americas and Eurasia. For the first time in its history, the company generated more than half of its sales outside Europe. Brazil and Russia are now its second and third biggest markets, respectively.
In the Eurasia region, sales grew 21.6 percent with strong increase in Russia. Americas’ sales climbed as Brazil’s sales grew 24.3 percent in a market that grew by 6.1 percent. Euromed-Africa region’s sales grew 4.4 percent, and Asia -Pacific sales edged up 0.4 percent as 22.4 percent growth in China was nearly offset by a sharp 45 percent decline in Korea sales.
Jérôme Stoll, executive vice-president, sales and marketing said, “The Group’s international expansion strategy is bringing results. In 2012, we set a new international sales record with the Renault and Dacia brands. Nevertheless, this success could not totally make up for falling sales in Europe. In market conditions that were tougher than expected, we sought primarily to defend our margins.”
Brand-wise, sales of Renault, which accounts for 83 percent of total sales, dropped 6 percent, despite a strong 13.9 percent growth outside Europe. Dacia sales rose 4.8 percent, while Renault Samsung Motors saw sales fall 44.4 percent as it is restructuring its sales network and product offering and targeting a recovery from 2013.
Looking ahead, Stoll said, “Building on its international development strategy and the launch of attractive new products, the Renault group is setting a course for growth in 2013. We will pursue our development strategy in international markets. In Europe, our objective is to win back market share while continuing to implement a virtuous commercial strategy.”
In Paris, Renault shares are currently trading at 42.83 euros, up 1.05 euros or 2.50 percent.
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by RTT Staff Writer
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