Renault sales growth falters on Asia setbacks

  • 4/28/2018
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PARIS: Renault said revenue rose by a smaller-than-expected 0.2 percent in the first quarter, as the French carmaker suffered sales setbacks in India, China and South Korea, compounded by the effects of a stronger euro. Revenue advanced to €13.16 billion, Renault said on Friday, well short of the €13.77 billion expected by analysts, according to an Inquiry Financial poll. Sales in key growth markets showed a “mixed situation” in the quarter, added the French company. While Europe and Russia showed solid gains, a spokeswoman said, sales tumbled almost one-third in the price-sensitive Indian market, where the Kwid mini-SUV’s early success has given way to rapid decline and the larger Captur subcompact is struggling to make inroads. China registrations fell 16.8 percent amid a continuing slump in sales for the recently consolidated Jinbei and Huasong commercial vehicle brands, acquired through a joint venture with Chinese carmaker Brilliance. Sales by South Korean unit Renault Samsung Motors fell more than a quarter. The stronger euro cut automotive revenue by 4.8 percent or €575 million, weakening the value of overseas sales. The overall increase in sales volume contributed €275 million to revenue growth, and pricing improvements another €140 million. Renault reiterated its 2018 market outlook and earnings guidance.

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