Renault's Vehicle Sales Decreased by 4.5% Last Year Compared to the Previous Year..."Impact of Semiconductor Supply Issues"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] French automobile manufacturer Renault announced that global vehicle sales decreased by 4.5% compared to the previous year due to semiconductor supply issues last year. However, with electric vehicle sales increasing in the European region and semiconductor supply problems expected to gradually ease, sales are projected to rise this year.

According to major foreign media on the 17th (local time), Renault Group stated in a press release that "global vehicle sales last year recorded 2,694,000 units, down 4.5% from the previous year," attributing this to "pressure on new car supply caused by the global semiconductor shortage." Since 2019, Renault has experienced a decline in vehicle sales for three consecutive years due to the impact of COVID-19 and semiconductor and supply chain issues.

However, sales have significantly increased centered on electric and hybrid models, which were fully launched from the third quarter of 2020, raising expectations for sales growth this year. Renault Group analyzed, "Sales of electric and hybrid vehicles surged to account for 30% of total vehicle sales, and the proportion of electric vehicle orders in Europe more than doubled compared to the previous year," adding, "Retail sales in the five major European countries?France, Germany, Spain, the United Kingdom, and Italy?key export regions for electric vehicles, accounted for 58% of the total, a 6 percentage point increase compared to 2019."

They also explained that market share increased thanks to internal combustion engine vehicle sales from Romania’s Dacia brand, operated as a mid-to-low price brand in Europe, and Russia’s local brand Lada. Renault Group stated, "Lada, the Russian brand, recorded the highest market share in Russia at 29%, and Dacia also achieved a 35% market share in the local Romanian market."

However, with the European Union (EU) planning to ban the production of internal combustion engine vehicles from 2035, the transition to electric vehicles is set to accelerate. Renault Group explained, "By 2030, production plants for internal combustion engine vehicles for Dacia and Lada will also be converted into electric vehicle production plants," adding, "We will focus more on models that are profitable rather than just on production and sales volume."

This content was produced with the assistance of AI translation services.