Renault's global sales decline for third consecutive time in 2021

French carmaker Renault has reported that its worldwide group sales has fallen for the third year in a row with a decline of 4.5% in 2021. The company has attributed the decline in sales to the ongoing shortage of semiconductor chips. Sales of the company's passenger cars and light vehicles fell 4.5% to 2,696,401 units last year.

While sales of the Renault brand cars were down 5.3%, the sales of Dacia brand increased by 3.1%, and sales of Lada brand increased by 0.3%. However, Renault, which along with its global peers is looking to accelerate electrification of its models under the leadership of CEO Luca de Meo, said was pursuing the sales policy initiated in the third quarter of 2020. This, it believes, will lead to an increase in the share of its sales.

The company further informed that in its five main European markets - France, Germany, Spain, Italy and the United Kingdom - the share of sales to retail customers now represented 58%, which is up six points as compared to 2019.

The carmaker is now working towards becoming an all-electric car manufacturer in the continent by 2030. The company's CEO Luca de Meo has said that the French brand will become 100 per cent electric in Europe in 2030, which is a shift from the brand's previous strategy to become 90 per cent electric and the rest of the 10 per cent to consist of other types of vehicles.

The car manufacturer reportedly has a ‘Plan B’ as well, which is continuing to sell internal combustion engine-powered cars, in case any issue prevents the automaker's strategy to go fully electric by the end of this decade. Not only Renault, its subsidiary Dacia brand too will be gradually electrified, but probably after 2030.

(with inputs from Reuters)

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