Renault: sales goal of over 3 million vehicles set for 2013

Plans to increase production in Brazil and Russia, launch five models in India

2012/01/17

Summary

 Renault plans to sell two EV models, the new small car Clio, and new models of entry segment family cars and light commercial vehicles in 2012. The company will launch the new Twingo in 2013 using a small vehicle platform being co-developed with Daimler.

 Renault's plans for emerging markets include increasing annual capacity to 380,000 vehicles in Brazil and bringing its own plant in Russia to full production while starting consignment production by AvtoVAZ to increase production in Russia. Renault will launch five models in India intensively from 2011 to 2012.

 Renault had set its sales goal for 2013 at 3 million vehicles for the medium-term business plan presented in February 2011. This reflects Renault's policy to keep its sales share in Europe by shifting to small cars while increasing sales in emerging markets.

 Renault's outlook for 2011 is above 2010 in terms of unit sales and revenues. The company expects its unit sales in 2011 to be over 2.63 million vehicles and revenues over 39 billion Euros.



Model plans: Launching two EVs and three small cars in 2012

 It is Renault's policy to stand ready for the increasingly stringent emission standards in Europe by launching electric vehicles and fuel efficient engines. Following the two EV models launched in 2011, Renault will launch 2 more EVs in the first half of 2012. In addition, Renault will introduce the new Clio and new models of the entry segment family cars and light commercial vehicles in 2012.

 Renault's product launch plans in markets outside of Europe include a model each in South America and Russia, as well as three models each in Eastern Europe and India in the first half of 2012. These plans reflect the production and sales of the Dacia-branded small crossover SUV, Duster, in Colombia, Russia and India (production started in 2011 in Brazil).

Renault's model plan (2011-2012)

Launch Outline
Kangoo ZE Oct. 2011  A light commercial EV van powered by a 44 kW・226 Nm motor and 22 kWh lithium-ion battery with a 170 km range in the EU combined cycle test, 4.21 meters long with a 3-3.5 cubic meters luggage compartment. Starting price 15,000 Euros (after 5,000 Euros subsidies). Battery lease fee 72 Euros per month. The Kangoo Maxi ZE with a 40 cm longer overall length was also released for sale on the same day.
Fluence ZE End of 2011  A four-door midsize sedan EV powered by a 70 kW・226 Nm motor and 22 kWh lithium-ion battery with a 185 km range in the EU combined cycle test. Starting price 20,900 Euros (after 5,000 Euros subsidies). Battery lease fee 82 Euros per month.
Twizy Beginning
of 2012
 An ultra-small tandem EV. The Twizy 45 powered by a 5 hp motor delivering 45 km/h maximum speed (driver's license not required in some countries) has a starting price of 6,990 Euros. The Twizy powered by a 17 hp motor delivering 80 km/h maximum speed has a starting price of 7,690 Euros. Battery lease fee 45-49 Euros per month.
ZOE Mid-2012  A small five-door hatchback EV of the size of the Clio. Powered by a 60 kW・222 Nm motor and lithium-ion battery with a 160 km range in EU combined cycle test. Designed for urban mobility and suburban driving.
New Clio 2012  The fourth-generation small hatchback and the first model developed according to Renault's new design strategy "simple, warm and sensual."
family car 2012  A new M0 (entry) segment model for families
Compact LCV 2012  A new M0 (entry) segment model of light commercial vehicles
New Twingo 2013  The third-generation small hatchback. Shares the RWD platform co-developed by Daimler for the Smart forfour.
New Trafic 2013  A light commercial vehicle co-developed with Opel/Vauxhall. It has been agreed that the automakers will cooperate in developing the second-generation model as well. Opel/Vauxhall will sell the vehicle as Vivaro.
Twingo ZE Second half
of 2014
 The EV system will be co-developed with Daimler. Renault-Nissan will provide motor technologies while Daimler will provide lithium-ion battery technologies. Daimler will adopt the new EV system on the next model of the Smart.

Renault Samsung's model plan

New SM7 Aug. 2011
(South Korea)
 A semi-large sedan and Renault Samsung's flagship model. First full remodeling in seven years requiring 32 months and 400 billion won (207 million Euros) to develop. Larger than the previous model and features a paddle shift and Sport Mode developed for a new joy in driving.

Source: Renault Press Release2011.5.12/ 2011.5.13/2011.8.5, Automotive News Europe 2011.3.9/ 2011.7.28

 

Product launch plans in markets other than Europe (2011 to first half of 2012)

Region 2011 2012
Q1-Q3 Q4 Q1-Q2
Americas *Duster
(Brazil,
Argentina)
*Duster
(Columbia)
Eurasia *Megane
(Russia)
*Fluence
(Russia)
*Duster
(Russia)
Euromed Fluence ZE
(Turkey)
Family car Small LCV Passenger van
Asia/Africa SM7 *Fluence
(India)
*Koleos
(India)
B-segment
hatchback
(India)
B-segment
sedan
(India)
*Duster
(India)
Source: Renault Q3 2011 Revenues Presentation
(Notes) 1. Americas refers to Latin American markets. Eurasia includes Russia and CIS. Euromed refers to Eastern Europe, Turkey and North Africa. Asia-Africa includes Oceania as well as the Middle and Near East.
2. "*" indicates locally produced models.

 



Emerging markets: Annual capacity 380,000 vehicles in Brazil, 1.1 million vehicles in Russia including Nissan and AvtoVAZ

 In the context of capacity in emerging markets, Renault will increase its annual capacity in Brazil by 50% to 380,000 vehicles by 2013. Currently, Renault-Nissan Alliance together with AvtoVAZ has capacity of 1.1 million vehicles in Russia. The company plans to increase AvtoVAZ's capacity and sell 1.6 million vehicles of the three companies combined by 2016. Renault will launch in India, in 2011 to 2012, five models including the new model, Pulse, locally developed for the Indian market.

Brazil: Increasing annual capacity from 250,000 to 380,000 vehicles and the market share from 5% to 8%

 Renault will increase annual capacity of its Curitiba, Brazil plant from 250,000 to 380,000 vehicles by 2013 (announced in October 2011). The company plans to add 13 new models and double the number of distributors from 186 in 2012 by 2016.
 Renault and Nissan plan to double their combined market share in Brazil to 13% by 2016 (Renault's from 5% to 8%, Nissan's from 1.5% to 5%). Nissan plans to build a new plant in Brazil with an annual capacity of 200,000 vehicles and start production in the first half of 2014.

Source: Automotive News Europe 2011. 10.6

Russia: Renault, Nissan and AvtoVAZ aiming to sell 1.6 million vehicles combined in 2016 with a market share of 40%

 Renault-Nissan Alliance aims for unit sales of 1.6 million vehicles in Russia in 2016 (including AvtoVAZ's Lada brand) and for a market share of 40% (assuming the Russian market scale to be 4 million vehicles in that year) (reported in July 2011). The market share in the first half of 2011 was 6% for Renault, 4.8% for Nissan, and 23.6% for AvtoVAZ, or 34.4% for the three companies combined.
 The Alliance will increase their capacity in Russia to achieve the unit sales goal. Currently their capacity is 1.1 million vehicles including AvtoVAZ. In 2011, Renault operated its Moscow plant at a full capacity of 160,000 vehicles a year. In 2012, Renault will further increase its production by 10% to 175,000 vehicles. Nissan, too, will operate its St. Petersburg plant at full capacity of 50,000 vehicles. AvtoVAZ's Togliatti plant has an annual capacity of 900,000 vehicles and the company plans to change from two- to three-shift operations to produce approximately 500,000 more vehicles.
 In early 2012, a new production line will be built in AvtoVAZ's Togliatti plant to produce new models using Renault Logan's platform. AvtoVAZ will launch two models, including a station wagon, in early 2012. Nissan plans to launch a model toward the end of 2012 while Renault has plans to launch two models in 2013. The five Logan-based models are expected to account for 400,000 vehicles out of the unit sales goal of the three companies combined (1.6 million vehicles) in 2016.

Source: Automotive News Europe 2011.7.20/2011.7.22, etc.

India: Launching five models in 2011-12 including the new model, Pulse, developed for the local market

 Renault plans to launch five models in India in 2011-12, starting with the upper-end sedan, Fluence, in May 2011, Koleos SUV, in October, and three models including an SUV in 2012. In 2010, Renault ended a joint venture with Mahindra & Mahindra and has since been operating alone in India.
 Renault will launch a new model, Pulse, in India in January 2012, the third of the five models being launched in India in 2011-12. The Pulse is a small hatchback developed for the local market by Renault's design center in Mumbai, India. It is built upon Nissan Micra's platform and powered by dCi, a fuel-efficient 1.5L inline four-cylinder turbocharged diesel engine. The body and the engine are produced by Renault-Nissan Alliance's plant in Chennai.
 Renault is set to increase the number of distributors from 14 in the first half of 2011 to 40 by the end of 2011 and to 100 in 2013.

Source: 2011.11.1, Renault H1 2011 Financial Results Presentation

China: Increasing distributorship from 80 in 2011 to 130 in 2013

 Renault aims to increase its distributorship from 53 in the first half of 2011 to 80 by the end of 2011 and to over 130 in 2013.
 Renault reportedly plans to increase unit sales in China to over 100,000 vehicles within the next 3 to 5 years (sold 13,000 vehicles from January to July 2011). Renault's launch plans include the new Koleos SUV in October 2011, and Megane CC and Laguna Coupe in November. A report says Renault will start local production in China in 2016 most likely by a joint venture with Dongfeng Motor that has formed a joint venture with Nissan.

Source: Renault H1 2011 Financial Results Presentation, Automotive News Europe 2011.8.3

 



Medium-term business plan: Over 3 million unit sales in the world aimed for 2013

 In February 2011, Renault announced "Renault 2016 Drive the Change", a medium-term business plan through 2016. With the goal of "sustainable mobility accessible to all," Renault will strive to reduce the environmental impact of vehicles, plan products, conduct research and development, challenge regional needs etc., to ensure the Group's growth and generate free cash flow on a lasting basis.

 As for electric vehicles, a cumulative unit sale of 1.5 million EVs is expected by 2016 for the Renault-Nissan Alliance. Their combined EV production capacity will be 500,000 units a year in 2015. Renault will maximize common use of platforms with Nissan and Daimler partnership to reduce the R&D expenditure to less than 9% of revenues.

 The business plan includes a mid-term review at the end of 2013 with the mid-term objectives for sales at over 3 million vehicles, for automotive operational free cash flow at a minimum of 2 billion Euros, and over 5% of the Group's operating margin in 2013.

Renault 2016 Drive the Change (medium-term business plan through 2016) (published on February 10, 2011)

Reduction of
environmental
impact
 Renault will launch electric vehicles and innovative engines that will lower the average CO2 emission of Renault vehicles in Europe from 137 g/km as of 2011 to 120 g/km in 2013 and to 100 g/km by 2016.
 EV: Launching four models in 2011-2012 including Fluence Z.E., Kangoo Z.E., Twizy and ZOE. Renault also plans to launch more new models in 2014-2016.
 New diesel engines: The 1.6L engine "Energy dCi 130" is fitted on Scenic and Grand Scenic starting in May 2011. This will reduce CO2 emissions by 20% compared to conventional models.
 New gasoline engines: "Energy TCe" will be fitted on A, B, and C segments. This will reduce CO2 emissions by 30% compared to conventional models.
Product plan  EV sales outlook: Cumulative sales of electric vehicles by Renault-Nissan Alliance should reach 1.5 million vehicles by 2016. The Alliance will have an annual capacity of 500,000 vehicles from 2015.
 Renault Group had 40 models in 2010, will have 44 in 2013, 48 in 2016.
R&D  The R&D expenses will be below 9% of revenues. Platforms will be shared among more vehicles. 80% of the models launched in 2014 to 2016 will share a platform with a partner.
 The C/D platforms for mid- and upper-end models will be shared with Nissan and the two companies will produce 1.5 million vehicles a year in total.
 The A platform for small models will be shared with Daimler to build Renault Twingo and Smart models.
 The platforms for light commercial vehicles will be shared with Nissan and Daimler.
 Starting with M0 (Entry), B and C/D platforms, Renault will launch standardization of parts modules from the development phase to be fitted on several different models.
Cost reduction  Renault has been extending "Monozukuri", a new production management approach introduced by Nissan, from four plants in 2010 to all Group plants in 2011. By reviewing its entire value chain from design through delivery to end customers, the Group aims to reduce direct costs by 4% a year and 12% between now and 2013.
 Benefiting from the alliance with Nissan and strategic cooperation with Daimler, Renault will increase the production capacity utilization rate by 20 points and improve the rate to 100% worldwide by the end of 2013.
Regional plans  Renault will keep the No.2 brand position in Europe through a market shift to small cars and on-board features based on affordable technologies. As for emerging markets, Renault will focus on Brazil, Russia and India.
 Brazil: Market share will remain above 5% with the introduction of the new Sandero, Fluence and Duster in 2011.
 Russia: Market share will be increased to 6% in 2013 (including Renault only, excluding Lada vehicles by AvtoVAZ). Renault will launch Duster in 2012 and start production of a new M0 model at Togliatti plant in 2013.
 India: Renault will launch Koleos and Fluence in 2011, an SUV in 2012, and six new models in 2013 in India.

Source: Renault Press Release 2011.2.10

 



Industrial restructuring plan: Centralizing production of electric vehicles, batteries and other high value-added products in France

 Renault is restructuring its global production to counter the decline in the European market after the financial crisis and to meet fast growing demand in emerging markets. The company plans to invest 5.7 billion Euros in 2010 to 2013 in its production sites, of which 40% will be put in its plants located in France. Renault is operating under a policy to concentrate production of high value-added products such as electric vehicles, motors, batteries, light commercial vehicles and mid- and upper-end vehicles, in France in order to avoid the closing of plants.

 As for other products, Renault will increase local production in emerging markets. The ratio of Renault's sales outside Europe to its global vehicle sales is increasing and is expected to rise to 43% in 2011 (from 37.5% in the previous year).

Renault's industrial restructuring plan

Plant Country Products
Cleon France  The 1.6 dCi 130 engine starting in 2011, and the newly-developed electric motor starting in 2013
Sandouville France  The new LCV, Trafic, starting in 2013 (also producing a high-roof version of sister models, Opel/Vauxhall Vivaro). Annual production to reach 100,000 vehicles after launch of all versions.
Douai France  Starting in 2014, Douai plant will produce the mid- to upper-end vehicles for Europe and the successors to the Laguna sedan and MPV Espace, all built on a platform shared with Nissan.
Flins France  Production of batteries for electric vehicles will start in 2014 (delayed from 2012 as originally planned) with annual capacity of 100,000 batteries. Production of ZOE to start in 2012.
Maubeuge France  Production of Kangoo Z.E. to start in 2011.
Valladolid Spain  Production of Twizy EV to start in 2011.
Novo mesto Slovenia  Currently producing small vehicles including Twingo, Wind and Clio Campus. Production of the ultra-small four-seater smart for Daimler to start in 2013.
Tangiers
(under
construction)
Morocco  Production of Logan to start in 2012 using the newly-built first line with 30 vehicles per hour capacity. The second production line to start in 2013 to produce the same model to meet demands in Europe, Africa, Mexico and the Middle East.

Source: Renault Press Release 2011.2.2

 



Vehicle sales in 2011: Expected to top the 2.63 million vehicles sold in 2010

 Renault Group sold 2,238,000 vehicles in January to October 2011, up 3.5% from the same period a year earlier. In terms of unit sales by region, the Group sold 1,291,000 vehicles in Europe, down 6.1%, and 948,000 vehicles outside of Europe, up 20.1% from the same period a year earlier. Among the markets outside of Europe, the Group's sales results rose substantially by 65.6% in Eurasia including Russia, and by 27.5% in Americas, especially in South America.

 Renault foresees a 3% market growth worldwide (passenger cars and light commercial vehicles) in the full year of 2011 from 2010 as the uncertainties of the European economy have not done noticeable damage yet to automobile demand. Hence, Renault Group's unit sales in 2011 are expected to top 2,626,000 units in 2010 (as of October 2011).

Renault Group's global sales (PC+LCV)

(unit)
2006 2007 2008 2009 2010 Jan.-Oct.
2010
Jan.-Oct.
2011
Renault brand 2,115,572 2,134,949 2,019,369 1,861,856 2,115,481 1,739,270 1,857,024
Samsung brand 121,660 119,557 104,502 136,465 161,917 135,149 100,233
Dacia brand 196,378 230,535 258,372 311,426 348,269 288,106 280,878
Group
Total
Passenger cars 2,042,796 2,081,486 2,018,024 2,032,593 2,293,639 1,894,065 1,945,630
Commercial vehicles 390,814 403,555 364,219 277,154 332,028 268,460 292,505
Total 2,433,610 2,485,041 2,382,243 2,309,747 2,625,667 2,162,525 2,238,135

Source: Renault Monthly Sales
(Note) Sales of Lada vehicles by AvtoVAZ, 25% owned by Renault since February 2008, are not accounted for in the above figures.

 

Renault Group's unit sales by region
(unit)
Europe Outside of Europe Worldwide
Euromed Eurasia Americas Asia-Africa Total Ratio of
outside of
Europe
2007 1,624,261 424,121 244,926 191,733 860,780 34.6% 2,485,041
2008 1,507,554 274,352 130,218 254,957 215,162 874,689 36.7% 2,382,243
2009 1,529,368 240,500 80,428 236,029 222,863 779,820 33.8% 2,309,188
2010 1,642,065 272,748 106,534 317,028 287,421 983,731 37.5% 2,625,796
Jan.-Oct. 2010 1,373,968 219,241 83,119 251,097 235,289 788,746 36.5% 2,162,714
Jan.-Oct. 2011 1,290,572 252,291 137,604 320,168 237,502 947,565 42.3% 2,238,137

Source: Renault Monthly Sales
(Note) Figures for Europe include Western and Central Europe. Euromed includes Eastern Europe (Romania, Bulgaria etc.), Turkey and North Africa. Eurasia includes Russia and CIS. Americas mainly refers to Central and South America. Asia-Africa includes Oceania and the Middle and Near East.

 

Renault Group's market share in Europe (PC+LCV)
2008 2009 2010 Jan.-Oct.
2010
Jan.-Oct.
2011
Passenger car market share 8.97% 9.64% 10.76% 10.67% 9.97%

Source: Renault Monthly Sales

 

Renault Group's global production by model

(unit)
2006 2007 2008 2009 2010 Jan.-Jun.
2010
Jan.-Jun.
2011
Twingo 64,101 118,082 138,556 187,470 163,052 95,520 78,154
Clio 720,194 532,308 446,208 409,209 548,596 249,247 225,235
Thalia/Symbol 99,259 85,477 82,163 48,334 52,126
Modus 70,979 67,514 72,590 69,358 47,251 30,455 29,403
Logan 256,351 420,255 416,157 489,865 492,191 293,536 330,087
Sandero 110,832
Duster 86,239 26,827 89,307
Megane 662,281 629,612 437,598 459,862 500,803 277,374 253,425
SM3 71,817 82,650 65,590 90,937 124,271 30,088 28,291
Fluence 67,344 65,421 76,772
SM5/Latitude 71,675 76,363 53,987 64,473 88,470 44,432 39,838
SM7 17,807 15,081 14,433 18,143 13,779 7,778 6,468
Laguna 73,065 99,512 81,453 46,919 52,267 30,926 33,993
Espace 41,432 40,674 21,672 15,212 16,876 9,881 10,117
Vel Satis 4,683 2,812 1,685 1,179
QM5/Koleos 5,241 55,139 28,925 48,749 24,089 31,433
Wind 8,397 1,450 4,759
Total of passenger cars 2,054,385 2,189,363 2,001,377 1,963,715 2,258,285 1,235,358 1,289,408
Kangoo 232,647 227,264 216,630 151,196 162,729 94,601 100,260
Master 105,789 119,120 98,387 59,047 89,802 47,319 60,961
Mascott 17,413 7,585 8,399 5,706
Pick-up 1310 11,208
Trafic II 107,279 115,904 96,225 58,583
Total of commercial vehicles 474,336 469,873 419,641 215,949 311,114 141,920 161,221
Others 10,907 6,637 8,641
Total 2,528,721 2,659,236 2,421,018 2,179,664 2,580,306 1,383,915 1,459,270
Source: Renault Annual Report, Earnings Report 1H 2011
(Notes) 1. Figures for 2010 are taken from Mavel data.
2. Figures for Kangoo under commercial vehicles include Kangoo passenger cars.
3. Vehicles produced by Renault for GM and Nissan are not accounted for.
4. Figures for 2006-2008 include some of the vehicles produced for Renault by GM and Nissan.

 



Revenues in 2011: Expected to top 39 billion Euros registered in 2010

 Renault's revenues for January-June 2011 rose 7.3% from the same period a year earlier to 21.1 billion Euros but its operating profits declined 19.2% to 630 million Euros. The decline is due to a delay in parts supply after the disaster in Japan, sharp rise of material costs, and a decline in demand in Europe where most of the lineup are nearing the end of their model life. Renault allocated 150 million Euros for the two quarters as a loss caused by the disaster.

 Renault's revenues for January-September 2011 rose 8.7% to 30.85 billion Euros (Renault does not publish quarterly profits).

 Renault expects its revenues for the full year 2011 will exceed the 38.97 billion Euro mark in the previous year along with an automotive operating free cash flow of over 500 million Euros, and the capital expenditure and R&D spend below 9% of revenues (as of October 2011).

Renault Group's consolidated results

(in millions of Euro)
2007 2008 2009 2010 Jan.-Jun.
2010
Jan.-Jun.
2011
Jan.-Sep.
2010
Jan.-Sep.
2011
Revenues Automobile 39,190 36,241 32,415 37,654 19,017 20,143 27,046 29,402
Finance 1,492 1,550 1,297 1,317 651 958 1,333 1,444
Total 40,682 37,791 33,712 38,971 19,668 21,101 28,379 30,846
Operating margin
in % of revenues
1,354
3.3%
212
0.6%
(396)
-
1,099
2.8%
780
4.0%
630
3.0%
n.a. n.a.
Associated income from Nissan Motor 1,288 345 (902) 1,084 460 441
Group pre-tax income 2,989 761 (2,920) 3,548 1,003 1,248
Group net income 2,734 599 (3,068) 3,490 823 1,253
Renault net Income 2,669 571 (3,125) 3,420 780 1,220

Source: Renault Annual Report 2010, Earnings Report H1 2011, Key Figures - Revenues Q3 2011

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