Photo: Renault
Renault, Europe's third largest automaker by volume, has just reported its first major signs of solid growth. In the first half of 2014, the company delivered 1.37 million cars and light commercial vehicles, up 4.7% over the 1.3 million units a year earlier.
In Europe, Renault sales were up by 13%, while the Dacia brand was the fastest growing major brand in the first half of 2014, gaining 0.5% market share.
The French company's stocks are currently up 1.23% in Paris trading. However, they were up as much as much as 3.4% to €72.95, a clear sign that results were better than what investors expected.
Strong demand in the domestic French market, spurred by the launch of the 2014 Megane, helped Renault. However, Spain and the UK exceeded expectations as well. The affordable Dacia models and the Captur crossover helped balance out diminishing demand "in our main emerging markets and to maintain the group’s positive momentum,” as Chief Performance Officer Jerome Stoll said in the statement.
The Romanian budget brand has once again exceeded previous sales results, showing a 24% gain during the first six months of 2014. They sold 263,110 units of the Duster, Sandero, Logan and other models to customers wanting no thrills motoring.
Outside of Europe, Renault performed less well, with a 9% decline in demand to 589,182 units. Even so, the carmaker says its market share in the Latin America and Eurasia regions has grown.
Deliveries in Russia, their third biggest single market, fell by 8%. The whole country's car market is expected to drop 10% by the end of 2014 due to political unrest and tensions with the west.
For the second quarter, Renault predicts a slightly less rosy outlook. Annual growth in Europe is expected to be somewhere between 3 and 4 percent. The company will continue to rely on the Clio, Captur, Sandero and Duster, but is also looking forward to the new Twingo and Trafic's launch.
"The continued renewal of Logan and Sandero internationally should enable us to hold firm in falling emerging markets. In Europe, the imminent launches of New Twingo and New Trafic will confirm the trend of the first six months. Within this context, we confirm our projections of increased market share in Europe and of greater worldwide sales", says Jérôme Stoll, Chief Performance Officer and Executive Vice-President, Sales and Marketing.
The French company's stocks are currently up 1.23% in Paris trading. However, they were up as much as much as 3.4% to €72.95, a clear sign that results were better than what investors expected.
Strong demand in the domestic French market, spurred by the launch of the 2014 Megane, helped Renault. However, Spain and the UK exceeded expectations as well. The affordable Dacia models and the Captur crossover helped balance out diminishing demand "in our main emerging markets and to maintain the group’s positive momentum,” as Chief Performance Officer Jerome Stoll said in the statement.
The Romanian budget brand has once again exceeded previous sales results, showing a 24% gain during the first six months of 2014. They sold 263,110 units of the Duster, Sandero, Logan and other models to customers wanting no thrills motoring.
Outside of Europe, Renault performed less well, with a 9% decline in demand to 589,182 units. Even so, the carmaker says its market share in the Latin America and Eurasia regions has grown.
Deliveries in Russia, their third biggest single market, fell by 8%. The whole country's car market is expected to drop 10% by the end of 2014 due to political unrest and tensions with the west.
For the second quarter, Renault predicts a slightly less rosy outlook. Annual growth in Europe is expected to be somewhere between 3 and 4 percent. The company will continue to rely on the Clio, Captur, Sandero and Duster, but is also looking forward to the new Twingo and Trafic's launch.
"The continued renewal of Logan and Sandero internationally should enable us to hold firm in falling emerging markets. In Europe, the imminent launches of New Twingo and New Trafic will confirm the trend of the first six months. Within this context, we confirm our projections of increased market share in Europe and of greater worldwide sales", says Jérôme Stoll, Chief Performance Officer and Executive Vice-President, Sales and Marketing.
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