the French car market was at its lowest in 2021. Unsurprisingly, the Renault group announced on Monday that its sales had continued to fall by 4.5% in 2021, for the third consecutive year, under the effect of a new commercial policy but also of the shortage of electronic chips.
After having chained sales records for a few years with “low cost” vehicles, the French automotive group has cut costs, its workforce, and changed its commercial trajectory, looking for profitable sales more than large volumes. . Of which note: in a rather stable market compared to the catastrophic year 2020, the manufacturer saw its sales drop to less than 2.7 million vehicles worldwide in 2021, or 1.2 million less than in 2018.
On the waiting list for microchips
Its competitors have fared better: while the European market leader, the Volkswagen group, saw its sales fall by 2.7% on the continent, its runner-up Stellantis should announce a stable year while Toyota or Hyundai-Kia are rising. Renault has also been strongly affected by the shortage of electronic chips, its managing director Luca de Meo said on January 13. Some 500,000 cars might not be produced due to faulty electronic components. The group’s order portfolio in Europe has thus doubled compared to 2020 and amounts to more than 3 months of sales. The waiting lists are notably filled for its hybrid cars, its utilities, the economical Dacia Sandero, the 2nd best-selling car in Europe, or the electric Dacia Spring.
Dacia on the rise
In 2022, the brand’s commercial director, Fabrice Cambolive, estimates that Renault sales will remain “stable compared to this year, with upside potential linked to strong demand”, he indicated during a meeting. press conference. The brand has sold 30% of hybrid and electric vehicles in Europe, excluding utility vehicles, compared to 17% in 2020. It is aiming for 100% electric vehicles by 2030.
Renault has also simplified its offer, with fewer options, raised its list prices by 4% over the year, and is trying to break into the compact car segment, which dominates the European market, while the bulk of its sales is still represented by the little Clio. The group’s budget brand, Dacia, grew by 3% with 537,095 sales, driven by the Sandero but also by its Duster SUV and its LPG sales. The group also confirmed that it had reached its European CO2 emissions targets ( Cafe) in 2021.