French automaker Renault SA on Tuesday reported a sharp decrease in last year’s sales amid the COVID-19 pandemic, while unveiling its plans for a transition to electric and hydrogen-powered vehicles.
The group, which includes Japanese brands Nissan Motor Co and Mitsubishi Motors Corp, has suffered since it missed out on a tie-up with Fiat-Chrysler, and former chairman Carlos Ghosn was accused of financial misconduct by Japanese authorities.
Renault laid out a roadmap to recover the initiative after sales by volume slumped by 21.3 percent last year to 2.9 million vehicles in a market that was 14.2 percent lower overall.
Photo: Reuters
The fall was “principally due to the company’s large exposure to countries which imposed strict lockdowns ... in the second quarter, plus another slowdown in the fourth quarter, especially in France,” a Renault statement said.
For Europe as a whole, sales fell by 25.8 percent to 1.4 million units.
Hybrid and electric vehicles held up better than traditional vehicles in the second quarter, and in the last three months of the year, European orders in that segment were up by 14 percent from a year earlier, Renault said.
“From now on we will focus on profitability rather than sales volume, with unit margins being higher,” Renault chief executive Luca de Meo said.
Renault continued to dominate the European electric vehicle market last year, with sales of 115,888 vehicles, a gain of more than 101 percent.
Its small ZOE model accounted for the bulk of sales, with 100,000 vehicles.
The group plans several more electric versions, from its low-cost Dacia brand and remakes of its popular R5 and 4L models, to a higher-end vehicle developed with Nissan, a source close to the company said.
Another legacy brand, Alpine, might also be reinforced with two models, one of which could appeal to the sports-utility sector, the source said.
Hydrogen-fueled light commercial vehicles are also being developed after Renault announced plans to form a joint venture with US company Plug Power Inc, a leading developer of fuel cell systems.
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