Renault Group posts 6.7% sales improvement in Q3 2011
Following the supply constraints that impacted sales activity in the first half and the start of the third quarter, the Group was in a position to deliver vehicles to customers, particularly those with diesel engines that had built up in the order book in Europe. The Group continued its offensive outside Europe, with sales growth outstripping the market in all the markets.
In Europe, in a market that increased 1.4%, Group sales were down 4.4%.
With an 8.0% share of the passenger car and light commercial vehicle (PC + LCV) market, the Renault brand ranks third. Supply constraints continued to affect overall PC + LCV performance in the third quarter. These constraints have now come to an end, as shown in the positive upturn in sales in September, especially in France. The Renault brand remained the leader in light commercial vehicles in Europe with a 14.8% share of the market.
Dacia brand PC + LCV sales decreased 7.5%, impacted by component supply constraints and also by the end of the scrappage bonuses and the discontinuation of the LPG bonus in France, which affected Sandero in particular (-47%). The brand took a 1.4% share of the market. However, Duster saw strong sales with 28,600 units sold in the quarter, up +59%.
Group sales outside Europe, boosted by the continued momentum of the markets, increased 21.9% in the third quarter and accounted for 48% of the Group’s total sales, +6 points compared to last year.
In the Eurasia Region, the Group reported its best performance with a 63.5% increase in volumes in a market that rose 28.7%. Russia confirmed its position as the fourth largest market for Renault (up six places on the same period in 2010) with the success of Sandero (10,744 units sold, up 134%) and Logan (19,900 units, up 37%).
In the Americas Region, the Group posted an 18.2% increase in sales in a market that grew 9.0%. Brazil, the Group’s number-two market in the third quarter, reported record market share of 5.8% and unit sales, thanks in particular to the performance of Sandero phase 2.
In the Euromed Region, sales were up 10.7% in a market that increased 3.5%. The Group performed strongly in Turkey with the success of Symbol – the country’s top-selling car – and Fluence. Sales rose 8.9% in a Turkish market that contracted 3.1%.
In the Asia/Africa Region, after a difficult first half, Group unit sales grew 21.9% in a market that rose 1.1%. The action plans rolled out in South Korea enabled the company to limit the drop in the third quarter to -2.2% in a market that increased 6.2%.
In third-quarter 2011 Group revenues increased 11.9%2 to €9,745 million, or a 14.1% rise excluding currency effects. Automotive revenues increased 12.0% to €9,259 million, boosted by the Group’s strong sales momentum.
Global automotive markets and Group activity in the third quarter were in line with expectations. Macro-economic uncertainties, especially in Europe, have not yet had a notable impact on automotive demand. In this context, the Group expects a 3% increase in the global PC + LCV markets in 2011, with the European market stable and the French market down 3%.
As a result of its order book in Europe and strong international market position, the Group expects to post higher sales volumes and revenues than in 2010, and confirms its objective of Automotive operational free cash flow above €500 million for 2011, with a ratio of capital expenditures and R&D below 9% of revenues.