Renault is aiming to nearly double operating margin to more than 5 percent of sales in 2013, as part of a new growth plan that targets Brazil and Russia as key markets. The French carmaker, partnered with Japan's Nissan, said on Thursday it wanted to sell more than 3 million vehicles in 2013 using overseas and emerging market growth to offset a flat European market. Renault achieved a 2010 margin of 2.8 percent on sales of 2.63 million cars and light vehicles.
It flagged its low-cost Dacia brand as having a "key role in sales growth outside Europe" especially via its Duster SUV, which has seen brisk sales since its 2010 launch. Forty-five to fifty percent of Renault's sales should come from outside Europe by around 2013, compared with 43 percent expected this year, commercial director Jerome Stoll said.
Tapping a trend identified by other carmakers, Renault said it expected Brazil to overtake Germany as its second market by 2013 and forecast Russia, where a scrappage scheme is boosting sales after a slump during the financial crisis, would by then be its fourth market. Russia could be its top market by 2013 if sales of Ladas made by partner AvtoVAZ were included. Renault owns 25 percent of AvtoVAZ and could one day consolidate it, Ghosn said.
He told a news conference he hoped talks on increasing its AvtoVAZ stake would be concluded this year, but did not give further details. In India, which is expected to be Renault's 11th market by 2013, it will produce six models locally in 2013. But the carmaker does not plan to enter the Chinese market, now the world's largest, before 2013, Ghosn told journalists.
Renault pledged to increase the number of models offered by its brands - including South Korea-based Renault Samsung and Romania-based low-cost brand Dacia. The three brands will offer 44 models in 2013 and 48 in 2016, compared with 40 in 2010. Renault will launch a new version of the popular Clio in 2012, and a new Twingo this year. The low-cost Dacia brand will sell a new family car and a light commercial vehicle in 2012. In the premium segment models including the Fluence and Latitude sedans would form a key part of a product range "fully adapted to the needs of international markets," it said.
Renault will begin selling three electric vehicle (EV) models this year, and a fourth, the Zoe small car in 2012. Renault and Nissan are betting heavily on electric vehicles (EVs), investing 4 billion euros jointly in the technology. Renault 2010 net profit reached 3.42 billion euros, up from a 2009 net loss of 3.13 billion euros as it recorded a 2 billion euro capital gain from the sale of shares in Volvo.
Comments
Comments are closed for this article.