Renault sales plunged 30% as carmaker pulled out of Russia

RENAULT sales dropped nearly 30 per cent in the first half after the carmaker's forced withdrawal from the Russian market and persisting parts shortages dented shipments.

Renault sold around 1 million vehicles in the first 6 months of the year, it said on Tuesday (Jul 12). That's less than half of what it shipped during the same period 4 years ago when the company was on an expansion course. The decline narrows to 12 per cent excluding Russia, which was the firm's second-biggest market thanks to the popular Lada brand.

Renault fell as much as 2.4 per cent in Paris. The shares are down around a quarter this year.

The French automaker was forced to pull out of Russia because of the war in Ukraine, transferring its plant near Moscow and its AvtoVaz venture for a symbolic sum. Like all automakers, Renault is also wrestling with a global shortage of semiconductors that has curbed output of new vehicles, leaving consumers waiting months for deliveries.

Executives said they're expecting production of Renault models to rise in the second half as some supply issues improve.

Higher output

Output over the past weeks reached last year's levels or higher, and "this will accelerate over the next months", Fabrice Cambolive, chief operating officer of the main Renault brand, said on a call with reporters. "We are forecasting a second half significantly higher in terms of production that the first half."

Renault boosted the share of sales to private buyers - transactions that usually are more profitable - to 66 per cent from 53 per cent in the 5 main European auto markets.

The company also sold 12 per cent more SUV-style cars, a key part of chief executive officer Luca de Meo's turnaround plan. Sales of no-frills Dacia vehicles rose 5.9 per cent.

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