Renault forecasts 2010 full-year sales as record 2.5 mil units
EV models of Fluence ZE and Kangoo ZE coming up in September 2011
Sales volume of Jan - Oct period 2010 was 2.161 mil units, up by 14.5% y/y, and full-year sales forecast 2.5 mil units
Renault had vehicle sales of 2.161 million units in the January - October period of 2010, up by 14.5% on year-on-year basis. By brand, the Samsung brand, in particular, enjoyed brisk sales with 135K units in the same period, up by 27.7% over the same period of last year. Sales of the Renault and Dacia brands were up by 13.7% to 1.738 million units and by 12.7% to 287 K units, respectively.
By region, Renault sold 1.372 million units in Europe in the same nine months of 2010, up by 10.0% on a year-on-year basis. The market share in Europe achieved 10.62% with its passenger cars and light commercial vehicles, up by 1.33 percentage point over the previous 9.29%. Renault sold well outside Europe. Unit sales were up by 25.0% in the Eurasia including Russia, 30.2% in Americas centering on South America and 30.4% in Asia-Africa respectively on a year-on-year basis.
In the announcement of the third quarter results, Renault forecasted 2010 year-round sales as 2.5 million units. The sales will exceed 2.6 million units and refresh the 2005 record, reportedly.
Renault's 2010 business forecasts: sales of 2.5 mil units and a positive free cash flow of 700 mil Euros
|Market forecast||It is expected that the world automotive market will grow 8%; however the European market is expected to shrink 5% because the governments' new car subsidiary program ended (it was 10% down in the initial forecast).|
|2010 business forecast||Renault forecasts 2010 unit sales of 2.5 million units, and its automotive division will realize a positive free cash flow of 700 million Euros.|
Source: Renault Earnings report 2010 3Q, Automotive News Europe 2010/12/13 NOTE: According to Renault's PR personnel, Renault expects to have 2010 sales of 2.6 million units over the 2005 record.
Renault Group's global sales (PC+LCV)
|2005||2006||2007||2008||2009||2009 Jan-Oct period||2010 Jan-Oct period|
|Group Total||Passenger cars||2,141,565||2,042,796||2,081,486||2,018,024||2,032,565||1,664,555||1,893,120|
|Europe (see Note 1)||1,852,474||1,692,903||1,624,261||1,507,554||1,529,368||1,247,613||1,372,282|
|Source: Renault Annual Report 2009, Renault Monthly Sales|
|Notes: 1.||Europe means Western and Central Europe|
|2.||The 2008 total sales volume and the Group Total of passenger cars and commercial vehicles are different, although the figures are from source data without change.|
|3.||The table above does not include sales volume of the Lada brand of Avtovaz, in which Renault acquired 25% stake in February 2008.|
Renault Group's unit sales by regions (PC+LCV)
|Europe||Outside of Europe||Worldwide|
|Euromed||Eurasia||Americas||Asia-Africa||Total||Ratio of Outside of Europe|
|Source: Renault Annual Report 2009, Renault Monthly Sales|
|Note:||Europe means Western and Central Europe. Euromed includes Eastern Europe (Romania, Bulgaria, etc.), Turkish and North Africa. Eurasia includes Russia and CIS countries. Asia-Africa includes Oceania and Middle East.|
Renault Group's market share in Europe (PC+LCV)
|2007||2008||2009||Jan - Oct 2009||Jan - Oct 2010|
Source: Renault Monthly Sales
Revenues in first half of 2010 up 23.0% to 19.66 bn Euros recover operating profitability
Renault posted revenues of 19.67 billion Euros in the first half (January to June) of 2010, up by 23.0% on a year-on-year basis. Operating profit of 780 million Euros was recorded; thereby, Renault returned to profitability from operating loss of 620 million Euros in the same period of 2009. Percentage of operating profit to sales reached 4.0 %, which is the highest in past five years.
Renault's accrued revenues in the January-September period of 2010 were 28.38 billion Euros, up by 17.9% over the same period of the previous year (Renault does not present operating profit etc. quarterly).
Renault Group's consolidated results
|(in one mil Euros)|
|2005||2006||2007||2008||2009||2009 Jan-Jun period||2010 Jan-Jun period||2009 Jan-Sep period||2010 Jan-Sep period|
|Operating margin in % of revenues||1,323 3.3%||1,063 2.6%||1,354 3.3%||212 0.6%||(396) -1.2%||(620) -3.9%||780 4.0%||n.a.||n.a.|
|Associated income from Nissan Motor||2,284||1,888||1,288||345||(902)||(1,211)||460|
|Group pre-tax income||3,793||3,215||2,989||761||(2,920)||(2,711)||1,003|
|Group net income||3,462||2,960||2,734||599||(3,068)||(2,712)||823|
|Renault net Income (Note)||3,376||2,886||2,669||571||(3,125)||(2,732)||780|
Source: Renault Annual Report 2009, Press Release 10.10.27 Note: "Renault net Income" is calculated by deducting minority interest from "Group net income".
Renault to set up test centers at Lardy Site in France and in Romania, after global production up by 13.5% to 1.384 mil units in 1st half 2010
Renault had global production of 1.384 million units in the first half of 2010, up 13.5% on a year-on-year basis. In descending order of production volume, the Logan/Sandero was produced in 294 K units, Megane III in 269 K units and Clio III in 199 K units. Total production volume of these three models was 761 K units and exceeded a half of total production volume.
Renault is working on enhancing the test centers to develop products. In France, Renault invested 60 million Euros, and opened The Powertrain Innovation Center at the Lardy Plant in the suburb of Paris, in June 2010. The center commits to development of fuel efficient engines. Renault also set up the Titu Technical Center having test courses in Romania in September 2010. The center commits to development and testing of the B0 platform which is used for the Logan.
Renault Group's global production by model
|2005||2006||2007||2008||2009||2009 Jan-Jun period||2010 Jan-Jun period|
|Vehicles for Nissan in Mercosur||18,903|
|Total of CV||315,505||474,336||469,873||419,641||234,852||132,776||148,557|
|Source: Renault Annual Report 2009, Earnings Report 1H 2010|
|Notes: 1.||Renault has changed the passenger car/commercial vehicle categories of models since 2006. In the table above, the new categorization is applied to data from 2005.|
|2.||Total production by model and total passenger car production in 2005 and 2006 disagree, although the figures are from source data without change.|
|3.||Data of commercial vehicle Kangoo after 2006 include passenger car Kangoo.|
|4.||Data of 2006 and 2007 include the Trafic II produced by the GM plant in Spain, but do not include the Trafic II produced by the GM Plant in England. Data after 2008 do not include production of the Trafic II by either of the plants or the Nissan's Barcelona Plant in Spain.|
|5.||The 2008 data of the Clio include the Renault brand Clio produced at the Nissan's Mexican Plant.|
Renault invests 60 mil Euros to build engine test facilities at Lardy Plant in France
|Renault invested 60 million Euros in the PIM (Powertrain Innovation Center) and built 27 test facilities in June 2010. Three more buildings were built; one focuses on low fuel consumption and commits to downsizing engines and development of turbocharged engine; the other two have test benches for the development of powertrains and fuel systems.|
Source：Renault Press Release 2010/6/24
Renault opens a test center in Romania
|Renault had an opening ceremony for the Titu Technical Center in Romania in September 2010. The Titu Technical Center serves as complementary facilities for the Lardy and the Aubevoye Test centers in France, and conducts tests of car bodies for B0 platform cars and powertrains, which are used for the Logan. It has a hundred test facilities and test courses of a total length of 32 km.|
Source: Renault Press Release September 15, 2010
Renault - Nissan Alliance and Daimler agree to strategic partnership, while keeping partnership with Opel for light commercial vehicles
Renault - Nissan Alliance agreed to the strategic partnership by cross-shareholding of 3.1% in April 2010. They will have common design mostly for compact cars such as Renault Twingo and Daimler smart and supply powertrains each other.
Renault and Opel/Vauxhall, in September 2010, announced that both parties would continue the alliance for light commercial vehicles, including collaboration for the next generation Opel Vivaro and Renault Trafic. In addition, Renault sold out 303 million shares in a European commercial vehicle manufacturer Volvo (equal to 3.8% on a voting right basis) for about three billion Euros. The profit on sale will be allocated to reduce Renault's own net debt.
Renault-Nissan Alliance and Daimler agree to strategic partnership
|Schedule of market introduction|
|Mutual investment||Daimler and Renault-Nissan Alliance agreed to a strategic partnership in a broad range of business including mutual investment. Daimler and Renault-Nissan Alliance have cross-share of 3.1%.||-|
|Common designing for small cars||The next generation four-seat smart and the Renault Twingo will adopt car body structures based on a common design concept. There will also be an EV version of them developed.||2013|
|Powertrain||Renault-Nissan Alliance will supply three-cylinder and four-cylinder gasoline engines and diesel engines for small and compact cars for Daimler.||2012|
|Daimler will supply four-cylinder and six-cylinder gasoline engines, diesel engines and transmissions for Nissan's current model - Infiniti.||2013|
|Light commercial vehicle||Daimler and Renault-Nissan will have common designs for city medium vans for city use and share powertrains||2012 to 2014|
|Source:||Renault-Nissan Daimler News Release 2010/4/7, Daimler Press Release 2010/10/08, Automotive news 2010/10/06|
|Note:||Nissan will produce five-seat and five-door gasoline vehicles in the US, and supply them to Daimler for the US-exclusive model of compact Smart. The launch is planned in the fourth quarter of 2011.|
Renault and Opel to continue alliance for light commercial vehicles
Renault and Opel/Vauxhall announced in September 2010 that they would continue the partnership for light commercial vehicles. This partnership includes collaboration for the next Renault Trafic and Opel Vivaro, which are sister models.
Opel/Vauxhall pulled back the offer to sell the majority of their shares to the consortium of its own Canadian parts supplier Magna International and Russian state-run SBERBANK, and announced the unaided restructuring in February 2010.
Source: Renault Opel Press Release on September 17, 2010
Renault sells out a part of shares in major European truck maker Volvo
|Renault sold out 303 million Series B shares in a major European truck maker Volvo AG (14.9% on a capital basis and 3.8% on a voting right basis) for about 3 billion Euros in October 2010. Renault will continue to hold 139 million Series A shares (6.8% on a capital basis and 17.5% in voting right basis) to remain the top shareholder in Volvo. Renault will allocate money received from the sell-off to reduction of net debt of its automotive division (the net debt was 4.66 billion Euros as of the end of June 2010). Chief Executive Officer Carlos Ghosn said that the sell-off was intended to strengthen Renault's balance sheet in preparation for the announcement of the company's new strategy plan in 2011.|
|Source:||Renault Opel Press Release 2010/10/6, 7, Renault Earnings report 2010 First Half, Bloomberg 2010/10/7|
|Notes: 1.||Volvo, which is a manufacturer of commercial vehicles, does not have any capital ties with Volvo Cars which became a subsidiary of Chinese Geely Automotive.|
Renault sold out its own commercial vehicle division, Renault Vehicle Industry (Renault Truck as of now), to Volvo in 2001, while it took a stake in Volvo and became the top shareholder.
Emerging countries strategy: Renault to strengthen the tie with AVTOVAZ in Russia and production capabilities in India and Argentina
In June 2010, Renault announced the policy for strengthening the partnership with AVTOVAZ (in which Renault takes about 25% stake) by including Nissan, aiming to expand three companies' market share to 40% in Russia by 2015 (30% for 2009). This partnership includes a broad range of areas from platform sharing, R&D, purchasing, logistics, production to sales and marketing. It also plans to increase production of the Fluence, a midsize sedan, at the Renault's Moscow Plant from 2011.
In India, Renault completed the Chennai Plant in March 2010, which is the first plant of Renault-Nissan Alliance. The plant, with an annual production capacity of 400 K units, is planned to produce Nissan's global compact car Micra in the beginning, and Renault MPV Koleos and medium sedan Fluence from 2011. On the other hand, Renault announced in April 2010 that it would sell-off all of its equity in the venture company with an Indian auto manufacturer Mahindra & Mahindra (Mahindra) to Mahindra because of sluggish sales.
In Argentina, Renault invested 135 million Argentine Pesos to refurbish the Santa Isabel Plant and started operation of the new line from March 2010 to underpin sales expansion in South America. In addition, Renault plans to build a new plant in Algeria of Northern Africa.
Renault to strengthen partnership with Russian AVTOVAZ
|Renault-Nissan Alliance will strengthen the partnership with Russian AVTOVAZ by including Nissan (Renault acquired 25% plus one share in Avtovaz in February 2008). Renault will expand the total market share of the three companies in Russia from 30% in 2009 to 40% by 2015.|
|Platforms sharing||Renault-Nissan Alliance and AVTOVAZ will have access to the platforms and engines developed by either of the companies. They will develop overseas targeted Lada brand models.|
|R&D||Through sharing know-how and R&D costs, the quality of AVTOVAZ-made vehicles will be improved.|
|Purchasing||RNPO (Renault-Nissan Purchasing Organization) Russian and AVTOVAZ purchase division will be consolidated in operation to improve the quality of Russian suppliers.|
|Logistics||Renault-Nissan and AVTOVAZ will expand consolidation of the logistic divisions in Russia to reduce costs and improve quality and reliability of logistics.|
|Production||By 2012, production capabilities of three plants of AVTOVAZ Togliatti Plant, Renault Moscow Plant and Nissan St. Petersburg Plant will be expanded to 1.3 million units.|
|Sales & Marketing||Renault and Lada will cooperate in building a distribution network across Russia.|
|Source:||Renault-Nissan Alliance and AVTOVAZ Press Release 2010/6/11, Nihon Keizai Shinbun 2010/11/23, Automotive News Europe 2010/11/10|
|Notes: 1.||25% + 1 share in AVTOVAZ are held, respectively, by Russian Technologies State Company, an investment company Troika Dialog and Renault.|
|2.||News reports said that Nissan will acquire around 10% from a large shareholder, thereby Renault and Nissan will take a one third stake in AVTOVAZ to enable Renault-Nissan Alliance to take substantial control of AVTOVAZ.|
|3.||According to some news reports, CEO Ghosn of Renault-Nissan Alliance and Russian Prime Minister Putin had a discussion about increasing the stake of Renault-Nissan in AVTOVAZ to 50%.|
Russia: Renault to increase production of Moscow Plant
|Moscow Plant||Renault will start semi knock-down production of the Fluence and the Megane hatchback, and complete knock-down production of the Duster at the Moscow Plant. It is planned to ship the Fluence and the Megane hatchback from the Moscow Plant in the first half of 2011, and to introduce the Duster in the Russian market at the end of 2011. Renault expects that this will enable the company to meet needs for C-segment and SUV specific to the Russian market and improve its competitiveness there.|
|Source: Renault Press Release 2010/8/25, Automotive News Europe 2010/11/10|
|Note:||Renault-Nissan Alliance is said that it is studying the possibility to build an assembly plant in Primorsky, outside Vladivostok in the Russian far east region.|
|Completion of Chennai Plant||Renault-Nissan Alliance had an open ceremony for the Chennai Plant in India in March 2010, which is the first plant for Renault-Nissan Alliance. Renault-Nissan invested 45 billion rupees for the plant with an annual production capacity of 400 K units. In the beginning, the plant will produce Nissan's global compact car Micra (March in Japan) to sell in the Indian market and export to Europe, Middle East and Africa. From 2011, the plant will produce Renault's MPV Koleos and medium sedan Fluence.|
|Breaking off joint venture with Mahindra||Renault announced in April 2010 that it would sell-off its entire equity share in the joint venture company Mahindra Renault Pvt Ltd with an Indian OEMs Mahindra & Mahindra to Mahindra. Renault has a 49% stake and Mahindra a 51%. The joint venture company has manufactured and sold the medium sedan Logan, but its sales have been sluggish. Renault will continue to grant a production license for the sedan, and supply engines and transmissions to Mahindra.|
|Source:||Renault-Nissan Alliance Press Release 2010/3/17, Mahindra-Renault Press Release 2010/4/16, Automotive News Europe 2010/2/10|
|Notes: 1.||Renault-Nissan Alliance plans to launch an "ultra low-cost car" cheaper than Tata's Nano under the partnership with Indian motorcycle manufacturer Bajaj in 2012.|
|2.||Renault has a plan to increase current 15 dealers in the sales network to 150 by the middle of 2011.|
Argentina: Renault to refurbish Argentine Plant
|Renault refurbished the Santa Isabel Plant in Argentina for 135 million Argentine Pesos. The new production line has been in operation since March 2010. The plant, which produces the Clio, Symbol and Kangoo, will add a new model to its production from the end of 2010. The plant is intended to complement production for the Curitiba Plant in Brazil and to support sales expansion in South America.|
|Source: Renault Press Release 2010/5/7, Automotive News Europe 2010/10/4|
|Note:||Renault is reported that it will expand the market share in Brazil from the current 5.6% to 10% for the next three years. Therefore, it plans to invest one billion Real and to launch three new models in Brazil, according to the report.|
Algeria: Renault plans to build a plant
|Renault is planning to build a plant in Algeria to produce 75 K units per year from 2012. In the beginning, the plant will operate as an assembly plant, while Renault considers promoting it to a complete car production plant for the next step.|
Source: Automotive News Europe 2010/11/26 Note: Renault sold 56,089 units in 2009, and had a 23.5% share in Algeria.
Renault to launch EV versions of 4-door sedan Fluence ZE and compact Kangoo ZE van from September 2011
Renault will shift into high gear the sales of electric vehicles (EV) starting in September 2011, which is a part of the zero-emission strategy of Renault-Nissan Alliance.
In September 2011, Renault will launch two EV models of four-door sedan Fluence ZE and Van Kangoo ZE. These two models will be equipped with lithium ion batteries, and have a range of 100 km per charge in the EU combined mode. The battery will be leased separately. The vehicle prices except the battery will be 21,300 Euros for the Fluence ZE and 15,000 Euros for the Kangoo ZE, both of which include a subsidy of 5,000 Euros in France.
Renault will launch a micro EV Twizy, a two-seater of which seats are positioned tandem in the front and the rear of the car, in the latter half of 2011 and a compact EV Zoe for commuters in 2012.
As for vehicles which use an ordinary internal combustion engine, Renault launched six new or remodeled vehicles, including the two-seat compact coupe roadster Wind and the Dacia brand small off-road car Duster, in 2010. It will remodel the Samsung brand SM7 in 2011 and launch seven models including the Clio IV and Morocco-made vehicle models in 2012.
Renault's EV models
|Model name||Year of launch||Outline|
|Fluence ZE||September 2011||The Fluence ZE is a 4-door sedan EV based on the Megane. The motor outputs 70 kW (95 HP)/226 Nm at maximum and a lithium-ion battery is installed. With a 220 V household main supply, it will take eight hours to fully charge the battery, and 30 minutes with a 32A/400V rapid charger station. It will have a range of 100 km per charge in the EU combined mode. The Fluence ZE will come with a navigation system to display remaining mileage and the nearest charge station as standard. The price of the vehicle except the battery will be 21,300 Euros in case where a French government grant of 5,000 Euros is applied. The battery will be leased for 79 Euros per month. Renault started receiving advance orders in April 2010. The Fluence ZE is produced at the Bursa Plant in Turkey.|
|Kangoo Van ZE||September 2011||Kangoo Van ZE is a compact electric van based on the Kangoo (The maximum load capacity is 650kg). The motor outputs 44 kW (70 HP)/226 Nm, and a lithium-ion battery is equipped. It takes eight hours to fully charge the battery at a 220 V household main supply. It is able to drive 100 km in the EU combined mode. The price of the vehicle except the battery will be 15,000 Euros in case where a French government grant of 5,000 Euros is applied. The battery will be leased for 72 Euros per month. Renault started receiving advance orders in April 2010. The Kangoo Van ZE is produced at the Maubeuge Plant in France.|
|Twizy||Latter half of 2011||The Twizy is a micro two-seat EV, with the seats positioned in tandem in the front and the rear of the vehicle. It is characterized by the wheels positioned outside of the car body (a GVW of 450 kg). The motor outputs 15 kW (20 HP)/57 Nm at maximum. A model with a maximum output of 4 kW will be available later. It has a range of 60 miles per charge. The vehicle price except the battery is as inexpensive as those for three-wheelers. According to Renault, the lease cost of the battery will be similar to a monthly call charge for smart phone. The Twizy will be produced at the Valladolid Plant in Spain.|
|ZOE||Middle of 2012||The ZOE is a two-box 5-door compact EV for commuters. The vehicle price except the battery will be the compact car Clio level. The lease cost and utility fee for the battery will be competitive to diesel cost for users who drive 12,000 km per year. The ZOE was presented for the first time in the Paris Motor Show in October 2010.|
|Source: Renault Investor Day 2010 Presentation 2010/9/27, Renault Press Release 2010/7/7|
|Note:||According to Renault, 87% of daily users of vehicles drive less than 60km per day, and 32% of B segment vehicle users never drive more than 150 km.|
Renault's new model vehicles launched in 2010
|Model name||Year of launch||Outline|
|Duster||April 2010||The Duster is a Dacia brand all-terrain vehicle. It has two-wheel drive and four-wheel drive versions. It is priced at 11,900 Euros including tax in France. At the end of 2012, Renault will launch a right-hand drive model in the UK. It is produced at the Pitesti Plant in Romania. It will be produced in Brazil from 2011, and Russia and Columbia from 2012.|
|Megane Coupe-Cabriolet||May 2010||The Megane Coupe-Cabriolet is the sixth derivative version of the new Megane. It is equipped with a glazed folding glass roof. It is produced at the Douai Plant in France. It is offered with three gasoline engines and three diesel engines in its lineup. The 2.0-L gasoline engine is equipped with the CVT, and the 1.5-L diesel engine with 6-speed EDC (Efficient Dual Clutch).|
|Wind||June 2010||The Wind is a two-seat compact coupe roadster, having an overall length of 3.83 m. The Wind employs the same platform as the Clio II. The Wind needs 12 seconds to open or close its roof, which is twice as fast as the norm for its class. Since the roof rotates 180 degrees and is stowed below the boot lid, the boot space is unchanged whether or not the roof is stowed (270 liters under the VDA standard).|
|Laguna||November 2010||Te Laguna is a new model of the medium sedan Laguna. Five-door sedan and wagon versions were launched. It has a lineup of two gasoline engines and five diesel engines.|
|Latitude/(SM5)||November 2010||The Latitude/SM5 is an export model of the Renault Samsung's high-end sedan, SM5. The model is sold under the Renault brand Latitude outside Korea. It has great amenities in the compartment with knee room of 251 mm for the rear seat and an ion generator with an air purifying function. It also has full safety equipment including ESC, emergent braking system and a side impact sensor.|
|Master||April 2010||The Master is a new model of the heavy Van Master, which is Renault's flagship light commercial vehicle. It has a higher fuel efficiency and higher amenity in the cabin than existing vehicles. The Master is offered with front-drive and rear-drive versions, and four different sizes and heights of vehicle body. It is produced at the SOVAB Plant of Batilly in France.|
|Source:||Renault Investor Day 2010 Presentation 2010/9/27, Renault Press Release 2010/2/5, 3/11, 6/28, 11/11, Dacia Press Release 2010/3/3, 4/12|
Mid-term Production Forecast by IHS Global Insight
Renault : Light vehicle production by Country (IHS Global Insight Forecast)
Source: Global LV Production Data (as of 7 Dec. 2010)
- 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. Figures for 2008 and 2009 indicate actual production results.
- 3. All rights reserved. Reproduction of any data will require permission of IHS Global Insight.
France: Renault-Nissan to Supply 1.6-Litre Diesel Engine to Daimler
2010-12-08 – As part of a technical alliance, Renault-Nissan will supply a new 1.6-litre diesel engine to Daimler, reports Autocar. French sources have told the enthusiast publication that engine will be installed in the German automaker's smaller models, including the next generation A- and B-Class.
Significance: This is the latest instance of how Renault-Nissan and Daimler will work together to reduce costs and expand on opportunities together following the announcement of a capital tie-up in April. Powertrains look set to be one of the most important areas of this relationship, as each makes use of the other's core capabilities—Renault-Nissan in small engines and Daimler in large, multi-cylinder engines. Such relationships are likely to be increasingly important as a result of the ever-tightening emissions regulations which are coming into force, increasing the cost of engine development. Earlier this week it was reported that Nissan's premium brand Infiniti could use engines from Daimler's performance division, AMG, for some of its future models. However, of more substantial importance will be a range of new small gasoline (petrol) and diesel engines which will be used in the next generation of Renault, Nissan, Mercedes and Smart small cars.
Turkey: Renault to Start Exports of Fluence EV to Europe in 2011
2010-12-07 – Renault's Turkish joint venture (JV) Oyak Renault is to begin exports of the electric Fluence from next year, reports Asia Pulse. Renault Mais director-general Ibrahim Aybar has said that the vehicle would be sold on the French market first. However, he added that the company expected to see the sale of 30,000 electric vehicles (EVs) in Turkey within the next five years, although it would require investment in the necessary charging infrastructure. He added that the company was also proposing that such vehicles should also be supported by a zero tax rate for the next five years.
Significance: Production of this vehicle is already being ramped up— the first ones have been approved for shipping to Israel to be tested as part of the Project Better Place initiative. This model is one of four EVs being launched by Renault over the next couple of years, and will be joined by the electric Kangoo and the B-segment Zoe built in France, and the Twizy city car that will be built in Spain. While most sales of this vehicle are expected to take place outside Turkey initially, there are already efforts being made to give the technology a foothold in the market, supported by Renault. However, it remains to be seen what incentives the Turkish government can offer before we know what impact that EVs will have.
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