Renault’s higher-value brands make up for low sales volumes in 2021
Category: #business  By Pranali Mehta  Date: 2022-01-18
  • share
  • Twitter
  • Facebook
  • LinkedIn
Renault’s higher-value brands make up for low sales volumes in 2021

French automobile manufacturer, Renault’s higher value brands have reportedly performed solidly during the previous year, which has helped cushion the blow of an overall drop in the annual worldwide sales of the group.

The automaker has currently been focusing on models that create higher value to customers to compensate for the dent caused in its sales figures.

According to sources, the consecutive three-year lag in sale numbers in 2021 is a consequence of the chip supply shortage, which has affected numerous companies across the globe.

Luca de Meo, Chief Executive Office of Renault has apparently transitioned the company’s strategy from emphasizing on creating huge sales volumes to bringing more value for in its products. 

As per company reports, the sale of passenger cars and light vehicles dropped 4.5% to 2,696,401 units. The sales of the Renault brand went down by 5.3% despite the sales of its subsidiaries like Lada progressing at 0.3%, Dacia increasing by 3.1%, and Alpine sports jumping a whopping 74% in the past year.

It is worth noting that although the company is not making sales numbers, its share prices went up by 2%.

Sources claim that the latest sales policy implemented by Renault in the third quarter of 2020 is helping with the increase in sales in its most profitable channels.

Fabrice Cambolive, Brand Commercial head at Renault asserted that he anticipates substantial growth in the brand in terms of the net revenue per model in the year 2022.

The carmaker reported that in its five major European countries, including Spain, Italy, France, Germany, and the United Kingdom - the share of sales to its retail customers is currently at 58%, which is up by 6 points as compared to 2019, before the onset of the COVID-19 pandemic.

Source credit:

https://money.usnews.com/investing/news/articles/2022-01-17/renaults-2021-worldwide-group-sales-fall-4-5

  • share
  • Twitter
  • Facebook
  • LinkedIn

About Author

Pranali Mehta

Pranali Mehta    

Pranali Mehta boasts of over three years of experience as a content writer. Having completed her graduation in chemical engineering, she worked as safety & environment associate in a chemical company for a year. Harnessing her passion for writing however, Pranali deci...

Read More >>

More News By Pranali Mehta

KKR to acquire renewable energy firm ContourGlobal for £1.75Bn
KKR to acquire renewable energy firm ContourGlobal for £1.75Bn
By Pranali Mehta

ContourGlobal, a British power generation firm, has recently accepted a private equity takeover at a time when the demand for greener energy is increasing due to market turmoil caused by the Ukraine conflict. According to sources, the company has ...

Tata Power obtains a huge solar project from NHPC worth $223Mn
Tata Power obtains a huge solar project from NHPC worth $223Mn
By Pranali Mehta

Tata Power, an electric utility firm based in India, has recently obtained a solar project worth Rs 1,731 crore ($223 million) from NHPC (National Hydroelectric Power Corporation). According to sources close to the move, the wholly-owned division ...

Tamkeen enters strategic partnership with Bank of Bahrain & Kuwait
Tamkeen enters strategic partnership with Bank of Bahrain & Kuwait
By Pranali Mehta

Bahrain-based government agency, Tamkeen has recently inked a new strategic partnership agreement with the Bank of Bahrain and Kuwait (BBK) in a row with novel support programs. Incidentally, the agreement is an addition to the partnership agreeme...