Renault’s turnover rises sharply in the 3rd quarter

Renault continues to recover despite a still complicated situation in the automotive market, with tensions in the supply of certain electronic parts, such as semiconductors, price increases and the forced transition to all-electric.

A slight drop in global sales

The group thus announced that it sold 481,000 vehicles worldwide in the 3rd quarter of 2022 (from July to October), a slight decrease of 2.4% compared to the same reference period last year.

Renault fully assumes its commercial policy decided by Luca de Meo and announced in Renalution’s famous strategic plan based on price (and therefore on margin) and not on volumes, and favors the most profitable distribution channels, such as private detriment of professionals and rental companies.

This is the reason why, although sales are falling globally, on the other hand, the increase is significant in the retail market, mainly in France, Germany, Spain, Italy and the United Kingdom, where the retail share represents 70%. % in 2021 announces the manufacturer.

Renault's main markets

Renault E-TECH range sales in good shape

The diamond maker is pleased with the success of its hybrid or electrified range, which represents 38% of sales to individuals since the beginning of the year, while the electrified market, all brands together, represents only 28% in the same period.

Highlight for the new electric Mégane E-TEch, for which 37,000 orders were registered since the 2nd quarter, with three quarters at the top of the range.

After Europe, the E-TECH line will also be marketed in Latin America in early 2023.

Runner and Spring Success at Dacia

At Dacia, the beginning of the year was marked by the launch of the new Jogger. The Renault group has announced more than 65,000 orders since the beginning of the year, 60% of which for tall versions. Also very successful is the small Spring, which is currently the cheapest electric car, the Dacia Spring is the best-selling electric model in France among private individuals and the 3rd in Europe.

Orders at Alpine

Renault group sports brand Alpine has also seen an increase in its orders since the first half of 2022, despite a range consisting of a single model with the A110. Limited editions energize the range, such as the Jean Rédélé version or the A110 R, which came out in 2 hours.

A sharp increase in turnover in 2022 vs 2021 for the Renault Group

As stated earlier, the turnover of the Renault group has increased sharply compared to 2021. It should be noted, however, that after the sale of Avtovaz in Russia after the war in Ukraine and the sanctions that were decided, the income from the turnover of 2021 was restated in order to be able to compare what is comparable, namely -537 million euros for Avtovaz (Lada), in which Renault held the majority of the capital, as well as -330 million euros for the Russian activity of Renault.

Renault Group revenue 2022 in the 3rd quarter

Thus, the Renault Group’s turnover in the 3rd quarter of 2022 amounted to 9.8 billion euros, an increase of 20.5% compared to the 3rd quarter of 2021.

The automotive sector represents 9 billion euros, an increase of 21.7% compared to 2021. If turnover increases sharply while sales decline slightly, this is mainly explained by the establishment of the pricing policy. In addition, tensions linked to the semiconductor crisis that followed the Covid-19 health crisis are pushing manufacturers to favor selling the most profitable models.

The mobility part contributes 9 million euros, 3 million more compared to this period of 2021.

Finally, the banking sector, formerly RCI Bank, now called Mobilize Financial Services, saw its turnover increase by 8.4%, reaching 823 million euros. Although the number of sales financing contracts has decreased (explained by the drop in sales), the average amount financed, due to the very sharp rise in prices, allows for an increase in turnover.

Goals for the year 2022

By the end of the year, the Renault group is targeting an operating margin of over 5% and free operating cash flow for the automotive business of more than 1.5 billion euros.

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