by Gilles Guillaume
PARIS (Reuters) – Renault Group reported on a 0.1% drop in world sales in the second quarter on Wednesday, when they were still up on the first part of the year, a reflection of a degradation of the European vans market against the backdrop of economic uncertainty.
This stop, despite an still sustained pace of launching new vehicles, brought the growth of volumes to 1.3% in the first half, after +2.8% in the first quarter.
The diamond group, which opted for an interim solution to replace its emblematic director general Luca de Meo, a brutally left for Kering, had warned in mid-July that sales below expectations on the market for individuals and light utility vehicles in June in Europe would impact its financial results of the first semester and its 2025 forecasts.
The French car manufacturer, which will publish its complete figures from the semester sold on July 31, has revised its operating margin forecasts and free cash flow.
“We have noticed throughout the first half of an increasing competition between actors in the European market for commercial vehicles,” said Ivan Segal, director of world sales and operations of the Renault brand, which weighs around 70% in the sales of the French manufacturer.
“The demand is difficult, we feel an economic context made of lots of uncertainties certainly leading to companies to give a certain number of purchases to tomorrow,” he added during a press teleconference.
Citadines Clio, Sandero, R5 and A290 featured
While the diamond brand has seen its car sales climb 8.4% in the first half thanks in particular to the Clio, best-seller in Europe, its sales of van and vans, a very profitable market constituting one of the strong points of Renault, dropped by 29% over the period, an aggravated decrease by an unfavorable basic effect and a hollow in the range of express and renewal from the master.
Ivan Segal nevertheless expects the Renault brand to return to market share in utility vehicles in the second half. It expects global growth “in the continuity” of the first half and on two -digit growth in the brand’s sales outside Europe.
The Renault group has more than 70% of its sales on the continent, a situation that has relatively preserved it so far from commercial upheavals linked to American customs duties, but which can disadvantage it in the event of a slowdown in Europe, where the competition of new Chinese entrants is added.
To remedy this, the diamond brand launched an offensive produced in Latin America, Turkey, Morocco and Korea, which resulted in a sharp increase of 16.3% of sales out of Europe in the first half.
This offensive goes through the launch of new models but also by the marketing now under Renault brand of the star SUV of the group’s low cost brand, Dacia, on the Turkish market.
This transfer has largely contributed to the 0.7% drop in world sales in Dacia in the first half, even if the Sandero remained the best -selling vehicle to private customers in Europe, a status that the city car has occupied since 2017.
On a European market engaged in forced walking electrification, sales of Renault brand electric vehicles jumped 57% – outperforming a market up 25% – thanks in particular to the success of the R5 in France, but also in Germany or Spain.
Its electric cousin at Alpine, the A290, has also boosted sales of the Renault group Premium sports brand, with a jump of 85% of registrations on the first half of 2025.
(Gilles Guillaume report, edited by Kate Entringer)
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