Renault's business results improve thanks to European recovery and updated lineups
New Scenic compact MPV and Alaskan one-ton pickup to be launched in 2016
2016/10/14
- Summary
- Launching new Megane and Scenic, as well as the Talisman Estate in Europe
- Europe: increasing production in France and Spain
- Latin America: expansion of production facilities in Brazil and Argentina
- China: Dongfeng Renault joint venture starts production of Kadjar
- Other markets: activities in India, Turkey, and Morocco
- Renault-Nissan to collaborate on development of technologies for autonomous driving and connectivity
- Global unit sales for H1 2016 reach record 1,568,000 units
- Operating profit for H1 2016 hits record high of EUR 1.54 billion
- Production forecast by LMC Automotive: Renault Group's global production to reach 4.04 million units in 2019
Summary
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"Drive the Change" midterm target achieved ahead of schedule
In its "Renault - Drive the Change" midterm business plan released in February 2014, the Renault Group set targets to generate EUR 50 billion in revenue and achieve an operating margin in excess of 5% in 2017. In 2015, Renault's revenue increased to EUR 45.3 billion and its operating margin 5.1%, to meet one of its midterm targets two years ahead of schedule. The Group will strive to boost revenue further through increased sales with rejuvenated lineups, and to keep its operating margin above the 5% mark by reducing costs.
Launching ten new models in 2016
Renault Group is continuing to aggressively release new products in 2016, launching models in Europe like a new Megane and Scenic, as well as the Talisman Estate. As for areas outside Europe, the Group will release the Kadjar compact SUV in China, Alaskan one-ton pickup truck in Latin America, a new Megane Sedan for some emerging markets, and new Koleos large SUV around the world.
Share of vehicles sold in Europe rises to 61.8% of global sales
While the European auto market returned to growth, areas outside Europe including Russia and Brazil are in a downturn. The share of vehicles sold in Europe has risen to 61.8% of the company's total sales in the first half of 2016. Outside Europe, sales in Africa, the Middle East, and India increased. In France, Renault's output in the country increased owing to production of Nissan vehicles and transfer of production from other countries in accordance with an agreement signed in 2013 with trade unions to boost plant activity and employment. Renault Group will also pursue its business offensive outside Europe. The Group will maintain all investment plans and extend its lineup of SUVs with three new models in Brazil. In China, the company's joint venture Dongfeng Renault has started production of the Kadjar compact SUV at its Wuhan Plant.
Renault-Nissan Alliance unveils strategy for autonomous driving and connectivity
The Renault-Nissan Alliance achieved synergies worth EUR 4.3 billion in 2015, meeting the 2016 target one year ahead of schedule. The introduction of the Alliance's Common Module Family (CMF) vehicles as well as convergence of purchasing, development, and production functions accelerated these efforts. The Alliance also unveiled launch plans for the autonomous driving and connectivity technologies.
Business results for H1 2016 and outlook for 2016
Renault Group posted record sales of 1.57 million units for the first half of 2016. The Group's revenue for the period increased by 13.5% year-over-year (y/y) to EUR 25.2 billion and operating profit grew 40.6% to EUR 1.54 billion with an operating margin of 6.1%. According to Renault Group's outlook released in July 2016, its revenue and operating margin for 2016 are expected to improve from the previous year (EUR 45.3 billion and 5.1%).
Related Reports:
Renault plans product offensive through alliance with Nissan and Daimler (Apr. 2015)
Geneva International Motor Show 2016: Renault New Scenic MPV (debut) (Apr. 2016)
Beijing Motor Show 2016: Renault: Showcasing an SUV at first Beijing Show (May 2016)
Launching new Megane and Scenic, as well as the Talisman Estate in Europe
The Renault Group is continuing to aggressively release products in 2016, and will launch ten new models in and outside Europe. In Europe, the Group will release the new Megane hatchback and estate, Scenic five-seat MPV and Grand Scenic five/seven-seat MPV, as well as the D-segment Talisman Estate. All of these new models are underpinned by the CMF C/D architectures developed with Nissan.
Outside Europe, the Group will release the Kadjar in China and Kaptur in Russia (sold as the Captur in the areas other than Russia) to meet fast-growing demand for SUVs. In South America, the Group will launch the Alaskan global one-ton pickup truck as a follow up to the Duster Oroch, a pickup truck designed for the local market and released in 2015.
![]() New Renault Scenic C-segment MPV (Photo: Renault) |
![]() Alaskan: Renault's first one-ton pickup truck (Photo: Renault) |
Renault's 2016 new model launch plans for Europe
New Megane Hatchback | January 2016 | A C-segment hatchback. This model is underpinned by the CMF C/D, a modular architecture developed with Nissan. The hatchback is 64 mm longer (4,359 mm) and 25 mm lower (1,447 mm) than the previous model. The Megane hatchback is manufactured at the Palencia Plant in Spain. |
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New Megane Estate | February 2016 | A C-segment station wagon. The Megane Estate GT utilizes the CMF C/D platform to accommodate five passengers and boasts the segment's longest load length. |
Talisman Estate | First half of 2016 | A D-segment station wagon. The Talisman Estate features the same dimensions as the sedan version, which was released as the Laguna's successor in 2015. It is underpinned by the CMF C/D platform and offers luggage space of 1,700 liters. |
New Scenic | Second half of 2016 | A C-segment, five-seat MPV. It is based on the CMF C/D architecture like the Megane and Kadjar. The new Scenic has a higher ground clearance, shorter rear overhang, and wider track than the previous model. |
New Grand Scenic | Second half of 2016 | An MPV with a length of 4,634 mm, which is 24 cm longer than the new Scenic. Like the new Scenic, the Grand Scenic is based on the CMF C/D platform, and it is offered in five- or seven-seat versions. |
Renault's 2016 new model launch plans outside Europe
Kadjar | First half of 2016 (China) |
A C-segment compact SUV. It uses the same CMF C/D platform as the Qashqai. The Kadjar is positioned between the Captur and Koleos. The model for the Chinese market is manufactured locally at the Wuhan Plant. (Those for other markets are produced at the Palencia Plant in Spain.) |
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New Koleos (Sold as QM6 in Korea) |
Second half of 2016 | The new Koleos, which is underpinned by the CMF C/D platform, is both larger than the previous model and Renault's first D-segment SUV. The SUV features class-leading cabin space and rear knee room of 289 mm. It is manufactured at the Busan Plant in Korea for 80 countries other than China, and at the Wuhan Plant for Chinese market. |
Alaskan | Second half of 2016 (South America) |
The Alaskan is Renault's first one-ton pickup truck and is based on the Nissan NP300 Navara/Frontier. Renault started sales of the global pickup truck in South America. The Alaskan is manufactured in Mexico, Argentina, and Spain. |
Kaptur | Second half of 2016 (Russia) |
A B-segment crossover SUV. It is sold as the Captur in areas other than Russia. The Kaptur is slightly larger than the Captur for Europe. An all-wheel drive version that enables the Kaptur to cope with the harsh climate in Russia is available. The Kaptur is produced at the Moscow Plant. |
New Megane Sedan | September 2016 | This C-segment sedan is the third new Megane series model following the hatchback and station wagon. It is built on the CMF C/D platform. The Megane sedan is manufactured at the Bursa Plant of OYAK-Renault, a joint venture in Turkey, for sale in 20 countries including Algeria, Saudi Arabia, Australia, and Turkey. |
Europe: increasing production in France and Spain
Renault Group has been increasing production and employment in France in accordance with an agreement signed with trade unions. In 2016, the Group started manufacturing the Nissan Micra at its Flins Plant and the Nissan NV300 at its Sandouville Plant. In Spain, facilities and equipment at the Palencia and Valladolid Plants were renovated for production of the new Megane and other models.
France: expansion of production and employment
Recruitment of 399 employees | Renault announced it will hire 399 employees at seven sites in France in February 2016. This move is based on agreements signed with three trade unions in 2013. The automaker plans to hire 1,000 employees and 1,000 apprentices at its manufacturing and logistics sites by the end of 2016. |
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Production enhancement plan in France | The agreements mentioned above resulted in increases in Renault's production and employment in France. * Production of the Nissan Micra (sold as the March in Japan) for sale in Europe will be transferred to the Flins Plant. The plant will manufacture 132,000 units of the Micra annually, starting from the end of 2016. * Production of gearboxes will be transferred from Portugal to the Cleon Plant. The plant will produce 65,000 units of gearboxes annually. |
Manufacturing Nissan NV300 | In February 2016, Renault announced that it will produce the Nissan NV300 van, a successor to the Primastar, at the Sandouville Plant. A total of 100,000 units of the NV300 are expected to be manufactured during the period 2016-2026. The automaker invested EUR 230 million in the plant and renovated its equipment over the past three years to transform the plant into a center for van production. The Sandouville Plant is currently manufacturing the Renault Trafic and Opel Vivaro and will produce the Fiat Talento in the future. All three vans are sibling models of the NV300. |
Spain: starting production of new Megane at Palencia Plant
Palencia Plant | Renault invested EUR 600 million in its Palencia Plant from 2014 to 2016 to upgrade the body shop, paint shop, and assembly plant facilities. The automaker started manufacturing the new Megane at the plant in November 2015 following the Kadjar in the spring of the same year. Accordingly, the Palencia workforce has increased in the last eighteen months from 1,900 to 4,200. The Megane and Kadjar are based on the CMF C/D platform. |
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Valladolid Plant | In May 2016, Renault announced plans to invest EUR 600 million in its Valladolid Plant to renovate the equipment. The automaker plans to manufacture a new model and a new type of engine in the period 2017-2020. |
Latin America: expansion of production facilities in Brazil and Argentina
Renault Group will not adjust its investment plans in Brazil despite the stagnant economy there. The Group plans to start local production of the Captur and Kwid SUVs while it will import and sell the Koleos luxury SUV in Brazil. In Argentina, the Renault-Nissan Alliance will invest to build a pickup manufacturing line for Renault, Nissan, and Daimler vehicles.
Brazil: extending its lineup with three SUVs, maintaining investment plans
Production and sales of new SUVs | In August 2016, Renault announced that it will extend its lineup with three SUVs joining the Renault Duster compact SUV in Brazil. The company intends to expand its share of the fast-growing SUV market. Renault plans to launch the Captur B-segment SUV in the first half of 2017, and the Kwid A-segment SUV and the Koleos top-of-the-range SUV by the end of the same year. The Koleos will be imported while the Captur and Kwid will be produced at the Curitiba Plant in Brazil. |
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Maintaining investment plans | In August 2016, Renault confirmed that all investments announced for Brazil have been maintained despite the stagnant economy. The automaker completed an investment of BRL 1.5 billion ahead of schedule for the first phase of its plan (2010-2015). Renault plans to invest a further BRL 500 million for the second phase (2014-2019). |
Argentina: Renault-Nissan Alliance invests USD 800 million through 2018
Production of pickups for Renault, Nissan and Daimler | In July 2016, The Renault-Nissan Alliance unveiled plans to invest USD 800 million in Argentina through 2018. USD 600 million will be used to build a dedicated pickup manufacturing line for Renault, Nissan and Daimler. The line will be installed at Renault's Cordoba Plant with an annual production capacity of 70,000 units. The Alliance plans to start manufacturing the Nissan NP300 Frontier in 2018, followed by the Renault Alaskan and a pickup model for Daimler by the end of 2019. |
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Renault produces new models | Renault plans to invest remaining USD 200 million. A USD 100 million investment was announced in March 2015 for production of the Sandero, Sandero Stepway and Logan. The automaker will invest another USD 100 million in a new model to be produced in Argentina. |
China: Dongfeng Renault joint venture starts production of Kadjar
China: Dongfeng Renault opens Wuhan Plant
Starting Kadjar production | Dongfeng Renault Automotive Company, a joint venture between Dongfeng Motors and Renault, started operations at its Wuhan Plant in February 2016. The joint venture began production at the plant with the Kadjar compact SUV which was released for sale in March. The plant has an annual production capacity of 150,000 units that could be doubled to 300,000 units. The local component content of Renault brand vehicles built in China reached 80%. |
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Koleos Production | In April 2016, Renault unveiled the flagship Koleos SUV at the Beijing International Automobile Exhibition. The SUV is for the Chinese market and is produced at the Wuhan Plant. (The Koleos for 80 other countries will be manufactured at the Busan Plant in South Korea.) |
Production of EV | In September 2015, Dongfeng Renault announced plans to start production of an electric vehicle (EV) in 2017. The EV model will be based on the Renault Fluence Z.E. and manufactured at the Wuhan Plant. It will be released under the Dongfeng brand exclusively for the Chinese market. |
Other markets: activities in India, Turkey, and Morocco
India: expanding market share with Lodgy and Lodgy Stepway MPVs and Kwid SUV
Launch of Lodgy | In April 2015, Renault launched the Lodgy; the first MPV the company sells in India. (The Lodgy is sold under the Dacia brand in Europe.) The standard version seats eight people while a seven-seat version is also available. The MPV is produced at The Renault-Nissan Alliance's Oragadam Plant and priced between INR 759,000 and 974,000. The automaker expects to expand its market share in India from 2% in 2014 to 5% within two years through entering the MPV market. |
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Launch of Lodgy Stepway | Renault released the Lodgy Stepway, a new version of the Lodgy with crossover styling in June 2015. The Lodgy Stepway is priced between INR 1,199,000 and 1,229,000. |
Launch of Kwid | Renault launched the Kwid, a compact hatchback featuring SUV styling for the Indian market, in fall 2015. It is the first model to use the CMF-A modular architecture developed with Nissan. The Kwid comes with a three-cylinder 800cc engine. In summer 2016, a version with a 1.0-liter engine was added. The Kwid is produced at The Renault-Nissan Alliance's Oragadam Plant in India and priced between INR 264,000 and 396,000. The hatchback will also be sold in other emerging and international markets. |
Turkey: producing Megane sedans at OYAK-Renault's plant
In September 2016, Renault started production of the new Megane C-segment sedan at the Bursa Plant operated by its Turkish joint venture Oyak-Renault. The sedan is the third version of the new Megane series. Renault invested EUR 200 million in research and development, as well as for renovation of the facilities and equipment for production of the sedan. The Megane sedan is produced exclusively at the Bursa plant. The automaker plans to manufacture 90,000 units of the Megane sedan annually and export 80% of the vehicles to 20 countries including Algeria, Saudi Arabia, and Australia. |
Morocco: partnership with government to set up a supply platform
In April 2016, Renault concluded a partnership with the Moroccan government to set up a structured ecosystem that will constitute a global supply platform. The total investment will amount to MAD 10.4 billion. This platform will provide parts not only to the Tangier Plant in Morocco but to other Renault's plants around the world as well. With this investment, the local component content of vehicles produced in the country will be raised from 32% to 65% and annual parts sales will grow to MAD 20 billion. The Tangier Plant has an annual production capacity of 340,000 units, which is to be expanded to 400,000 units in the future. (Note: MAD 1 = approx. USD 0.103 as of the end of September 2016) |
Renault-Nissan to collaborate on development of technologies for autonomous driving and connectivity
The Renault-Nissan Alliance has fully adopted the jointly developed Common Module Family (CMF) architecture for vehicles, and synergies in purchasing, engineering, and manufacturing functions have been accelerating. The Alliance will collaborate on research and development of advanced technologies for purposes including autonomous driving and connectivity in the future and unveiled related launch plans.
Renault-Nissan Alliance: achieving synergy target one year ahead of schedule
Achieving synergy target of EUR 4.3 billion | In July 2016, the Renault-Nissan Alliance announced that it generated EUR 4.3 billion in synergies in 2015, up 13% from the previous year. In 2014, the two companies integrated four major functions including engineering; manufacturing, engineering, and supply chain management; purchasing; and human resources. As a result of this, the Alliance expected to achieve its goal of generating EUR 4.3 billion in annualized synergies by 2016. This target was achieved one year ahead of schedule. |
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EUR 5.5 billion in synergies expected in 2018 | The Alliance expects 70% of its vehicles to be built on CMF architectures by 2020. Cross-production of vehicles will also continue to be a major driver of manufacturing synergies. The Alliance will collaborate on research and development of advanced technologies for purposes including autonomous driving and connectivity in the days ahead. Chairman and CEO Carlos Ghosn expects to generate at least EUR 5.5 billion in synergies in 2018. |
Renault-Nissan Alliance's autonomous driving technology timeline
In January 2016, the Renault-Nissan Alliance unveiled plans to launch more than ten vehicles with autonomous driving technology by 2020. The Alliance will install the technology on mainstream vehicles in Japan, Europe, the U.S, and China. | |
2016 | Introduction of vehicles with "single-lane control," which allows cars to drive autonomously on highways. Nissan installed this technology (ProPILOT) on the Serena launched in August 2016. |
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2018 | Introduction of vehicles with "multiple-lane control," which can autonomously negotiate hazards and change lanes during highway driving. |
2020 | Introduction of vehicles with "intersection autonomy," which can navigate city intersections and heavy urban traffic without driver intervention. (It will be possible for drivers to activate or deactivate the Alliance's autonomous driving technology as they please.) |
Renault-Nissan Alliance's connectivity technology timeline
When the Renault-Nissan Alliance announced a launch plan for vehicles with autonomous driving technology, it also confirmed a timeline to launch a suite of connectivity applications. These applications will make it easier for people in the vehicle to stay connected to work, entertainment, and social networks. | |
Second half of 2016 | Introduction of a new automotive application for mobile devices, which allows remote interaction with the vehicle. |
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2017 | Introduction of the "Alliance Multimedia System", which provides navigation features as well as smartphone integration and wireless map updates. |
2018 | Introduction of "Alliance Connectivity & Internet of Things" platform, which supports the "Virtual Personal Assistant" feature for individual and business customers. |
Renault-Nissan Alliance: acquisition and partnership for development of connected car technology
Acquisition of French software-development company | In September 2016, the Renault-Nissan Alliance announced that it acquired the French software-development company Sylpheo. Terms of the acquisition were not disclosed. Sylpheo's team of 40 engineers and consultants will bring software development and cloud engineering expertise to the Alliance. Sylpheo acquisition enables the Alliance to accelerate the expansion of its connected car and mobility services programs. In January 2016, the Alliance launched a recruitment campaign to hire 300 technology experts to develop connectivity technologies. |
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Partnership with Microsoft | The Renault-Nissan Alliance and Microsoft Corp. signed a multiyear agreement in September 2016 to partner on next-generation connected car technologies. The two companies will work together to develop next-generation connected services based on Microsoft Azure, one of Microsoft's cloud platforms. These new services will include advanced navigation systems, remote monitoring of car features, and wireless updates of autonomous driving software. |
Global unit sales for H1 2016 reach record 1,568,000 units
Renault Group's global unit sales for the first half of 2016 increased by 13.4% y/y to 1,568,000 units, which set a new record high for the first half of the year. In Europe, sales climbed 14% thanks to successful launches of new Renault brand models including the Kadjar, Espace, Talisman, and Megane. Sales outside Europe grew 12.5% with a 38.2% increase in sales for the region incorporating Africa, the Middle East, and India. Sales were on the upswing in India, where the SUV-like hatchback Kwid has been successful, as well as in Iran where global trade resumed.
By brand, unit sales of the Renault brand vehicles increased by 16% owing to the success of new models. Sales of the Dacia brand vehicles also grew 2.7%. Both brands recorded highest ever sales for the first half of the year. Sales of the Renault Samsung brand vehicles increased by 25.9% thanks to the SM6 midsize sedan (based on the Renault Talisman) released in March 2016.
Renault Group unit sales by region
(Units)
2014 | 2015 | Change 2015 vs 2014 |
Jan.-Jun. 2015 | Jan.-Jun. 2016 | Change H1 2016 vs H1 2015 |
|
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Europe | 1,464,611 | 1,613,499 | 10.2% | 849,436 | 968,632 | 14.0% |
Americas | 416,934 | 355,151 | -14.8% | 163,288 | 158,390 | -3.0% |
Asia-pacific | 133,172 | 116,868 | -12.2% | 59,168 | 66,727 | 12.8% |
Africa Middle-East India | 308,012 | 359,858 | 16.8% | 151,041 | 208,715 | 38.2% |
Eurasia | 389,703 | 356,216 | -8.6% | 159,189 | 165,510 | 4.0% |
Group | 2,712,432 | 2,801,592 | 3.3% | 1,382,122 | 1,567,974 | 13.4% |
Source: Renault Earnings Report 2014, 2015, H1 2015, and H1 2016 (Note) 1. In 2014, Renault adjusted its geographic divisions. According to the new divisions; Europe includes Western and Central Europe; the Americas include South and Central America (the Renault Group does not have a presence in the U.S. and Canada); the Asia-Pacific includes Japan, China, South Korea, and other Asian countries; Africa, the Middle-East, and India include countries in Africa and the Middle East, India, and Pakistan; and Eurasia includes Russia, CIS countries, Eastern Europe, and Turkey. 2. Since January 2016, unit sales for China are reported based on retail sales. They were previously reported based on wholesale figures. Figures for Jan.-Jun. 2015 and Jan.-Jun. 2016 in the table above show retail sales. |
Renault Group unit sales by brand
(Units)
2011 | 2012 | 2013 | 2014 | 2015 | Jan.-Jun. 2015 | Jan.-Jun. 2016 | |
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Renault | 2,261,271 | 2,122,892 | 2,131,490 | 2,118,844 | 2,170,644 | 1,055,078 | 1,223,448 |
Dacia | 343,477 | 360,039 | 429,596 | 511,465 | 550,920 | 289,775 | 297,609 |
Renault Samsung | 118,135 | 65,691 | 67,097 | 82,123 | 80,028 | 37,269 | 46,917 |
Total | 2,722,883 | 2,548,622 | 2,628,183 | 2,712,432 | 2,801,592 | 1,382,122 | 1,567,974 |
Passenger cars | 2,360,142 | 2,211,794 | 2,304,439 | 2,368,090 | 2,414,503 | 1,198,275 | 1,353,660 |
Commercial vehicles | 362,741 | 336,828 | 323,744 | 344,342 | 387,089 | 183,847 | 214,314 |
Source: Renault Earnings Report 2011-2015, H1 2015 and H1 2016 |
Operating profit for H1 2016 hits record high of EUR 1.54 billion
Renault Group's revenue for the first half of 2016 increased by 13.5% y/y to EUR 25,185 million and operating profit grew 40.6% to EUR 1,541 million. Operating margin improved by 1.2 percentage points to 6.1%. Operating profit hit a record high for the first half of the year thanks to the success of new models and diversified lineups designed for each region.
Operating profit was boosted by increased unit sales, a better product mix, and the declining cost of raw materials, while it was reduced by losses on foreign exchange and increased costs (including R&D costs to deal with diesel issues and start-up costs of new models). The Group will focus on cost reduction in the second half of 2016.
According to the Group's outlook disclosed in July 2016, at a constant exchange rate, its revenue and operating margin for the full year of 2016 are expected to surpass those of the previous year.
Renault Group consolidated results
(in million EUR)
2011 | 2012 | 2013 | 2014 | 2015 | Jan.-Jun. 2015 |
Jan.-Jun. 2016 |
|
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Group revenues | 42,628 | 40,720 | 40,932 | 41,055 | 45,327 | 22,197 | 25,185 |
(Automotive revenue) | 40,679 | 38,612 | 38,775 | 38,874 | 43,108 | 21,065 | 24,078 |
Group operating profit | 1,091 | 782 | 1,242 | 1,609 | 2,320 | 1,096 | 1,541 |
% of revenues | 2.6% | 1.9% | 3.0% | 3.9% | 5.1% | 4.9% | 6.1% |
(Automotive operating profit) | 330 | 34 | 495 | 858 | 1,496 | 680 | 1,121 |
Contribution from associated companies | 1,524 | 1,475 | 1,444 | 1,362 | 1,371 | 678 | 895 |
(Nissan) | 1,332 | 1,213 | 1,498 | 1,559 | 1,976 | 749 | 979 |
(Avtovaz) | 49 | 186 | (34) | (182) | (620) | (75) | (87) |
Net income | 2,139 | 1,712 | 695 | 1,998 | 2,960 | 1,567 | 1,452 |
Source: Renault Earnings Report 2011-2015, H1 2015 and H1 2016 |
Production forecast by LMC Automotive: Renault Group's global production to reach 4.04 million units in 2019
(LMC Automotive, August 2016)
The combination of a strong model policy and a healthy exposure to the fastest-growing European markets has helped Renault Group get off to a good start to 2016. According to LMC Automotive's forecast released in August 2016, Renault Group's global production (including the Renault, Dacia, Samsung, and Lada brand vehicles) is expected to be 3.46 million units in 2016, up 10.8% y/y. The group's production will continue to rise and reach 4.04 million units in 2019 for growth of 16.8% compared with 2016.
In Europe, Renault Group's relatively young model line-up will aid competitiveness, but exposure to the downgraded UK market following the surprise Brexit result will provide a drag on growth.
In France, plant reorganizations and transfers of production volume back towards the country from other global operations are boosting capacity utilization at some facilities. The group's French production is projected to grow 10.9% y/y to 709,953 units in 2016. LMC Automotive expects that production in the country will decrease gradually to 647,221 units in 2019, down 8.8% from 2016.
With the collapse of the Russian market, the Renault Group's production in the country is forecasted to drop 3.2% y/y to 418,132 units in 2016. As a longer-term recovery at the Russian Lada operation is expected, the group's production will increase to 481,386 units in 2017 and continue to grow to 636,792 units in 2019, a 52.3% increase compared with 2016.
In India, Renault Group is projected to experience robust growth in 2016, leading to a 156.7% increase in output over 2015, thanks to the huge success of Renault's SUV-like entry-level car, the Kwid. LMC Automotive forecasts that the group's production in the country will continue to grow and reach 200,994 units in 2019, up 39.8% from 2016.
The Renault Group's Chinese joint venture Dongfeng Renault Automotive Company has started Renault vehicle production in February 2016. The newly-launched Kadjar was the first vehicle to be manufactured at the plant in Wuhan. The group's production in China is expected to total 31,955 units in 2016. LMC Automotive projects that production in the country will increase more than fivefold over the next three years and reach 168,643 units in 2019.
Renault Group production forecasts (LMC Automotive, August 2016)
(Units)
COUNTRY | GLOBAL MAKE | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
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Renault Group | Renault | 1,571,285 | 1,582,537 | 1,755,047 | 2,035,236 | 2,090,153 | 2,095,557 | 2,227,342 |
Dacia | 1,063,846 | 1,063,555 | 1,048,770 | 1,120,751 | 1,134,741 | 1,301,337 | 1,324,219 | |
Lada | 505,320 | 395,034 | 307,527 | 293,495 | 366,501 | 437,195 | 481,796 | |
Samsung | 4,185 | 4,993 | 8,717 | 6,495 | 6,173 | 6,709 | 4,621 | |
Total | 3,144,636 | 3,046,119 | 3,120,061 | 3,455,977 | 3,597,568 | 3,840,798 | 4,037,978 | |
France | Renault | 485,249 | 510,922 | 640,253 | 709,953 | 695,040 | 674,912 | 647,221 |
Russia | Lada | 497,173 | 390,324 | 305,631 | 286,742 | 352,086 | 418,544 | 460,722 |
Dacia | 187,645 | 188,897 | 124,516 | 115,742 | 97,076 | 99,599 | 104,122 | |
Renault | 10,754 | 13,379 | 2,006 | 15,648 | 32,224 | 39,696 | 71,948 | |
Samsung | 426 | 0 | 0 | 0 | 0 | 0 | 0 | |
Russia sub-total | 695,998 | 592,600 | 432,153 | 418,132 | 481,386 | 557,839 | 636,792 | |
Spain | Renault | 324,583 | 390,264 | 465,316 | 561,466 | 553,586 | 529,322 | 472,853 |
Romania | Dacia | 333,707 | 338,593 | 339,204 | 312,559 | 311,564 | 376,798 | 335,896 |
Renault | 0 | 0 | 0 | 0 | 0 | 0 | 40,365 | |
Romania sub-total | 333,707 | 338,593 | 339,204 | 312,559 | 311,564 | 376,798 | 376,261 | |
Morocco | Dacia | 161,399 | 226,141 | 289,465 | 325,172 | 335,904 | 343,229 | 346,947 |
Renault | 5,000 | 0 | 0 | 0 | 0 | 0 | 0 | |
Morocco sub-total | 166,399 | 226,141 | 289,465 | 325,172 | 335,904 | 343,229 | 346,947 | |
Turkey | Renault | 324,252 | 305,840 | 337,474 | 330,248 | 282,272 | 248,639 | 277,469 |
Iran | Dacia | 31,773 | 27,319 | 37,986 | 81,072 | 102,985 | 134,316 | 160,351 |
Renault | 3,450 | 171 | 0 | 0 | 14,837 | 44,535 | 58,303 | |
Iran sub-total | 35,223 | 27,490 | 37,986 | 81,072 | 117,822 | 178,851 | 218,654 | |
India | Renault | 12,854 | 5,069 | 20,922 | 114,956 | 112,994 | 117,391 | 160,235 |
Dacia | 60,200 | 46,353 | 35,067 | 28,793 | 31,008 | 33,181 | 40,759 | |
India sub-total | 73,054 | 51,422 | 55,989 | 143,749 | 144,002 | 150,572 | 200,994 | |
Brazil | Dacia | 205,855 | 177,721 | 141,129 | 133,108 | 102,917 | 111,144 | 118,319 |
Renault | 63,167 | 37,132 | 42,006 | 33,362 | 54,909 | 63,572 | 70,165 | |
Brazil sub-total | 269,022 | 214,853 | 183,135 | 166,470 | 157,826 | 174,716 | 188,484 | |
China | Renault | 0 | 0 | 0 | 31,955 | 65,356 | 89,657 | 168,643 |
Korea | Renault | 121,701 | 120,677 | 78,777 | 97,791 | 136,234 | 149,687 | 126,956 |
Samsung | 3,759 | 4,993 | 8,717 | 6,495 | 6,173 | 6,709 | 4,621 | |
Korea sub-total | 125,460 | 125,670 | 87,494 | 104,286 | 142,407 | 156,396 | 131,577 | |
Slovenia | Renault | 93,693 | 106,514 | 87,926 | 83,821 | 104,044 | 103,492 | 94,602 |
Argentina | Dacia | 0 | 0 | 0 | 14,170 | 28,428 | 50,137 | 58,224 |
Renault | 117,635 | 80,877 | 75,610 | 52,001 | 35,771 | 24,108 | 25,708 | |
Argentina sub-total | 117,635 | 80,877 | 75,610 | 66,171 | 64,199 | 74,245 | 83,932 | |
Algeria | Dacia | 0 | 1,445 | 19,352 | 39,384 | 54,486 | 66,235 | 73,346 |
Colombia | Dacia | 61,899 | 36,223 | 43,305 | 58,150 | 60,646 | 62,148 | 63,395 |
Renault | 8,927 | 11,159 | 4,670 | 4,022 | 2,886 | 3,147 | 3,466 | |
Colombia sub-total | 70,826 | 47,382 | 47,975 | 62,172 | 63,532 | 65,295 | 66,861 | |
South Africa | Dacia | 21,201 | 20,398 | 18,322 | 12,364 | 9,668 | 24,485 | 22,778 |
Kazakhstan | Lada | 6,953 | 4,589 | 1,896 | 6,753 | 14,415 | 18,651 | 21,074 |
Mexico | Renault | 0 | 0 | 0 | 0 | 0 | 7,399 | 9,408 |
Indonesia | Dacia | 167 | 465 | 424 | 237 | 59 | 65 | 82 |
UK | Renault | 20 | 0 | 0 | 0 | 0 | 0 | 0 |
Ukraine | Lada | 1,194 | 121 | 0 | 0 | 0 | 0 | 0 |
Malaysia | Renault | 0 | 533 | 87 | 13 | 0 | 0 | 0 |
Source: LMC Automotive "Global Automotive Production Forecast (August 2016) (Note) 1. Data indicate figures of only small-size vehicles, including passenger cars and light commercial vehicles with a gross vehicle weight of under 6 tons. 2. All rights reserved. Reproduction of any data will require permission of LMC Automotive. For more detailed information or inquiries of forecast data, please contact LMC Automotive. |
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