French carmaker Renault reported flat sales in the second quarter, as a significant drop in European van demand offset gains in its passenger car segment, the company said.
Sales volumes for the three months to June were down 0.1%, a reversal from 2.8% growth recorded in the first quarter. The company had warned last week of a soft June, revising its full-year operating margin and free cash flow guidance downward.
“Demand is difficult, we sense an economic context full of uncertainty, certainly leading companies to postpone a certain number of purchases,” said Ivan Segal, global sales and operations director for the Renault brand, which accounts for 70% of the group’s global volumes.
While Renault brand passenger car sales rose 8.4% in the first half, led by strong performance of the Clio in Europe, the automaker faced a 29% drop in sales of vans and light commercial vehicles (LCVs). These vehicles are typically among the company’s most profitable, and the downturn was attributed to tough competition, an unfavorable base effect, and changes to the product lineup.
Renault’s electric vehicle sales climbed 57% in the first half, outpacing the broader EV market’s 25% increase, with notable success of the R5 in France, Germany, and Spain. Registrations under its Alpine premium sports brand surged 85%, driven by the launch of the new electric A290.
Renault continues to pursue higher-growth markets outside Europe, where competition from new Chinese players is intensifying. Sales outside Europe rose 16.3% in the first half, helped by new model rollouts in Latin America, Turkey, Morocco, and Korea. Segal said the brand expects to regain market share in commercial vehicles and maintain growth momentum outside Europe in the second half of the year.
