The Renault group has suffered a very bad year 2020, even worse than the average for the automotive sector. But the light is at the end of the tunnel: the electrical segment in particular is very promising.
Last year, between two confinements, Renault sold 2.9 million cars worldwide, announces a statement from the automaker. This is a volume down 21.3% year on year, in a market that fell by 14.2%. The French group is therefore even worse than the overall average. A poor performance that will have to be erased as quickly as possible to get off to a good start! Renault explains that this decline in sales is the consequence of its high exposure in countries that have undergone strict containment, ” and the suspension of their commercial activities in the second quarter “. In France, Renault also had to deal with the reconfinement in November, which caused a further slowdown in sales in the fourth quarter. In Europe, the company’s main market, sales were 1.4 million units, or 25.8% lower.
2020, terrible year
Nonetheless, measured optimism remains. Because the second half of the year showed “better resilience” as well as a good performance “ in the electric and hybrid markets », Notes Denis le Vot, commercial director of the company. To illustrate this result, Renault announces that the level of stocks is down by 20% and that the level of orders was 14% higher than in 2019 in Europe last year. Finally, the first fruits of the new strategy of Luca de Meo, the managing director, are starting to appear. The latter explains in fact that results are already visible in the second part of the year, “ particularly in Europe where the Renault brand is making progress on the most profitable sales channels and strengthening its leadership in electricity “.
Electricity and profitability
Electric vehicles are one of the segments that the manufacturer is seeking to expand. It is one of the leaders in Europe, with 115,888 electric vehicles sold in 2020 (including more than 100,000 Zoe), a volume that has exploded by more than 100%. And it is not over, with an electrified version of the Twingo and above all, the Dacia Spring which is quite simply the most affordable electric car on the market. Another axis of this strategy: ” We now prioritize profitability over sales volumes », Adds Luca de Meo who wants to emphasize a net unit margin per vehicle which must be higher in each of the manufacturer’s markets.