2023-07-19 07:42:00
(AOF) – “Renault Group’s worldwide sales amounted to 1,133,667 vehicles in the 1st half of 2023, up 13% compared to the 1st half of 2022”, announces the manufacturer. “In Europe, Group sales increased by 24% in a market up 17%”, he adds, pointing out that sales of electrified passenger cars of the Renault brand “increased by 18%” over the period. , now representing 37% of the brand’s passenger car sales in Europe
The Renault brand recorded 12% growth with more than 772,000 vehicles sold in the first half of 2023, continues the manufacturer. “In Europe, the Renault brand increased its sales by 21% to 503,242 units and is back on the podium, as the second best-selling brand and first in France”, it is specified.
The Group’s sales policy “continues on the most profitable channels”, namely sales to individuals, top-of-the-range versions and the C segment. The share of sales to individuals represents 65% of sales in the Group’s five main countries. in Europe, and the Renault brand accounts for more than one in two sales to individual customers in Europe.
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Key points
– Fourth largest automobile manufacturer in the world, created in 1898 and present under the Renault, Dacia, LADA, Alpine and Mobilize brands;
– Global industrial positioning, with a turnover of €46.2 billion achieved for more than 50% outside Europe and with strong positions mainly in the following countries: France, Italy, Turkey, Spain, Belgium-Luxembourg, Romania, Morocco and Poland;
– Business model: repositioning on medium-sized vehicles, on the quality of the offer in electric or hybrid vehicles and flexible services;
– Capital held at 15% (29.05% of voting rights) by the French State, at 15% by the subsidiary Nissan, and at 3.61% (5.88%) by the employees, the board of directors of 17 members being chaired by Jean-Dominique Senard, Luca de Meo being Chief Executive Officer;
– Strengthened balance sheet with net debt reduced to €426m, cash reaching €15.8bn.
Challenges
– “Renaulution” strategy in 3 stages, whose objectives will be updated in the fall of 2022: resurrection until 2023: brand autonomy, rationalization of platforms from 6 to 3, “mid-range” offer increased to 40% revenue once morest 15%, operating margin of +3%, free self-financing of €3 billion / renovation from 2023 to 2025 by renewing the ranges / renaulution: ramping up of the use of hydrogen in professional vehicles with a market share target of 30% in 2030;
– Innovation strategy focused on connectivity, services and electric vehicles: network of experts, innovation labs (California, France, Israel), ReKnow University dedicated to electrification, data cybersecurity, etc. / partnerships: CEA and the Moveo, Sysematic and ID4Car competitiveness clusters / NeVeOS project for the electronic architecture of vehicles / E-TECH hybrid technology and French carbon-free batteries / Renault Venture Kapital and Alliance Ventures investment funds for venture capital and support for start-ups;
– Environmental strategy aiming for carbon neutrality in 2040 in Europe and in 2050 in the world: objective of a range of all-electric private vehicles in Europe in 2030 via €23 billion of investments by 2027 and 5 common platforms / circular economy mobility driven by the Flins plant;
– Positive product mix effect for revenue with the launch of Arkana, Jogger and Mégane Electric;
– Towards the spin-off of electrical and “software” activities, which would be listed on the stock market, and thermal traction activities.
Challenges
– Impact of lack of semiconductors: loss of 300,000 vehicles in 2022;
– Impact of raw material inflation offset by commercial policy;
– Impact of the Russia-Ukraine war: net loss of €2.3bn from discontinued operations but debt reduction;
– Operational launch of Mobilize, bringing together mobility, energy, financing, insurance and maintenance services, targeting 20% of sales by 2030;
– After stable turnover and a tripling, excluding the Russian impact, of net profit in the 1 st half, 2022 objectives revised upwards: operational self-financing of +€1.5 billion and operating margin of +5%.
A paradoxical performance
Data from EY highlights that the performance of the world’s top 16 manufacturers was particularly strong in 2021. While the average margin has fallen for three years in a row, from 6.3% in 2017 to just 3.5% in 2020 , this margin stood at 8.5% in 2021. This level is a record for ten years. However, the context was particularly hectic for manufacturers, faced with unprecedented shortages of components. Global sales fell 14% in 2020, the year of the health crisis, to rebound by only 5% in 2021. However, last year, players were able to reap the benefits of their efforts on their fixed cost structure. .
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