Renault to rely on low-cost and electric cars to boost sales
China is expected to account for half a million sales by 2022.
PARIS - French carmaker Renault expects a first-mover edge in electric cars and a wider vehicle line-up for emerging markets to help it deliver a 44% sales increase by 2022.
Electric cars are "turning into a significant contributor to our performance while other automakers are just starting the journey", Chief Executive Carlos Ghosn said on Friday.
Renault's mid-term plan shows it growing faster than alliance partner Nissan, which it trails in China, due to recent investments in Iran and India and a Russian rebound.
While taking a lead in electric vehicles had come at the expense of profitability, Ghosn expects to turn this around by rolling out eight new battery-powered models and 12 hybrids.
Renault plans to increase sales to 5 million vehicles in 2022 from 3.47 million last year - while also targeting a 7% operating margin and 70 billion in revenue,
China, where Renault only began manufacturing last year, is expected to account for half a million sales by 2022.
Renault's budget car lineup, starting with the Dacia Logan in 2004, has underpinned the push into emerging markets and spawned a second car platform underpinning the Kwid mini-SUV, which has more than doubled the group's sales in India.
Combined sales of the "Global Access" low-cost line-ups are seen expanding 54 percent to reach 2 million vehicles, or 40% of the group total. An expanded utility van range is also expected to contribute to the emerging-markets surge.
The European share of Renault's vehicle deliveries would shrink to 36% from 52% under the plan, with sales in the home region remaining broadly flat.
Renault had been transformed since 2005 - when he took over - from a carmaker dependent on French sales of Megane compacts into a "resilient, multi-polar global company", Ghosn said.
Ghosn, who also heads the Renault-Nissan-Mitsubishi alliance, has not yet indicated whether he will seek to renew his Renault CEO contract, which expires next year. – Nampa/Reuters
Electric cars are "turning into a significant contributor to our performance while other automakers are just starting the journey", Chief Executive Carlos Ghosn said on Friday.
Renault's mid-term plan shows it growing faster than alliance partner Nissan, which it trails in China, due to recent investments in Iran and India and a Russian rebound.
While taking a lead in electric vehicles had come at the expense of profitability, Ghosn expects to turn this around by rolling out eight new battery-powered models and 12 hybrids.
Renault plans to increase sales to 5 million vehicles in 2022 from 3.47 million last year - while also targeting a 7% operating margin and 70 billion in revenue,
China, where Renault only began manufacturing last year, is expected to account for half a million sales by 2022.
Renault's budget car lineup, starting with the Dacia Logan in 2004, has underpinned the push into emerging markets and spawned a second car platform underpinning the Kwid mini-SUV, which has more than doubled the group's sales in India.
Combined sales of the "Global Access" low-cost line-ups are seen expanding 54 percent to reach 2 million vehicles, or 40% of the group total. An expanded utility van range is also expected to contribute to the emerging-markets surge.
The European share of Renault's vehicle deliveries would shrink to 36% from 52% under the plan, with sales in the home region remaining broadly flat.
Renault had been transformed since 2005 - when he took over - from a carmaker dependent on French sales of Megane compacts into a "resilient, multi-polar global company", Ghosn said.
Ghosn, who also heads the Renault-Nissan-Mitsubishi alliance, has not yet indicated whether he will seek to renew his Renault CEO contract, which expires next year. – Nampa/Reuters
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