Companies news

Renault has achieved record operating profit

The Renault group sold 1.57 million vehicles in the first half of 2016, increasing its global volume of sales and revenue for more than 13% (up to 25’185 million euros).

The company’s operating profit grew by 40.6% to 1’541 million euros (6.1% of revenue versus 4.9% of revenue in 2015).

“The first half results show the correctness of our strategy. The success of our new models, a variety of region proposals and involvement of all employees enabled the Group to set a new record in terms of operating profit for the first half and confident on the Outlook for the year as a whole,” said Carlos Ghosn, CEO of Renault Group.

Renault also explains its success with the significant growth of the business (positive effect in the amount of 614 million euros), increase in prices and range-price-version combination.

Renault expects that in 2016 the global market will grow by about 1.7% compared to 2015 the Growth of the European market is projected at least 5%, China 4% -5%, Indian 7% -9%. Brazilian and Russian markets will decline: the Brazilian market by 15% -20%, and Russian one by -12%.

According to Researching center “Effet”, in the first half of 2016 the volume of automotive market of Russia amounted to 672’140 machines (-14.1%). During this period, sales of Renault cars in Russia amounted to 52’041 car (-9%). 28 updated and 44 new brand’s models were launched in the country.

Sources: Renault Russia