Renault's Hybrid Models Drive First-Half Sales Increase Amidst Slowing Electric Vehicle Demand in Europe
NEWS
7/19/20242 min read
French automaker Renault announced a 1.9% rise in first-half sales volume compared to the same period last year, driven by strong performance in its hybrid vehicle segment in Europe. The company sold 1,154,700 vehicles globally, up from 1,133,478 units in the previous year, with nearly three-quarters of these sales occurring in Europe.
Sales in Europe grew by 6.7%, outpacing the market growth of 5.5%. Electrified vehicles, which include fully electric and hybrid models, accounted for 29.6% of Renault's sales in the region, an increase of 4.3 percentage points from 2023. This growth comes despite a significant slowdown in demand for fully electric vehicles, which saw only a 1.3% increase in the first half, according to data from the region's trade body.
Automakers, including Renault, are responding to the rising demand for more affordable and convenient hybrids by introducing additional models. After four consecutive years of declining unit sales, Renault returned to growth last year and aims to maintain this momentum with ten new launches planned for this year. However, the first-half growth rate slowed slightly in the second quarter, with a 2.6% rise in sales compared to the previous three months. This deceleration was attributed to decreased demand in international markets such as South Korea, India, and Argentina, according to Fabrice Cambolive, Renault brand CEO.
In contrast, Europe remained a bright spot for Renault, with demand for its hybrid models increasing by 45%, significantly outpacing the market growth of 21% in the same period. Hybrids made up 34.6% of Renault's sales volume, up from 25% a year ago. Cambolive emphasized that the company's strategy focused on boosting growth in Europe through its hybrid offerings in the first half of the year. Renault has introduced new models exclusively available as hybrids and plans to continue this approach due to the high demand for such engines.
While fully electric vehicle sales in Europe remained stable at 11.6% of Renault's total mix, they are expected to rise in the second half of the year with the introduction of the Scenic EV and the new R5 in October. Cambolive projected that electrified vehicles, encompassing both fully electric and hybrids, would constitute more than 50% of Renault's sales in the second half of the year.
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