Groupe Renault worldwide sales (passenger cars PC + light commercial vehicles LCV) dropped by 5.6% in the first quarter, in a market down 7.2%. The market share shows resilience and is now 4.1% (+0.1 points compared to 2018).
In Europe, Group sales increased by 2.0% in a market down 2.4%, thanks to the performance of Clio and the success of New Duster.
In Brazil, Groupe Renault sales were up 29.4% with a record market share at 8.9%. In Russia, the market and Group’s sales were almost flat versus 2018 with a market share at 28.5%.
In Argentina and Turkey, Groupe Renault keeps gaining market share with sales down 47% and 42% respectively, in markets down 49% and 44%.
In Iran, the application of US sanctions led to the cessation of sales for the Group since August 2018.
New product launches are in preparation, with the coming soon New Clio in Europe, Arkana in Russia, Triber in India and City K-ZE in China.
FIRST QUARTER REVENUES BY OPERATING SECTOR
In the first quarter of 2019, Group revenues came to €12,527 million (-4.8%). At constant exchange rates and perimeter1, the decrease would have been 2.7%.
Automotive excluding AVTOVAZ revenues amounted to €10,916, 6.3% down. This decrease was mainly explained by the negative volume impact (-4.7 points) and decreasing sales to partners (-3.1 points). The currency effect impacted negatively for 1.5 points, due to the devaluation of the Argentine peso, the Brazilian real, the Russian Rubble and the Turkish lira. The price effect was positive by 0.3 points and mix effects by 1 point.
Sales Financing (RCI Banque) generated revenues of €844 million in the first quarter, up 6.4% compared to 2018. The number of new financing contracts decreased by 2.7% reflecting lower activity in Turkey and Argentina. Average performing assets rose 8.2% to €46.5 billion.
AVTOVAZ contribution to the Group’s revenues totaled €767 million in the quarter, up 7.1%, thanks to Lada sales growth, and despite a negative exchange rate effect of €67 million.
In 2019, the global market is expected to decrease about 1.6%.
The European market is expected flat providing that there is no hard Brexit.
At international level, Russia is expected to grow about 3% (versus above 3% previously) and the Brazilian market should be up 10%.
Within this context, Groupe Renault confirms its guidance:
- Increase Group revenues (at constant exchange rates and perimeter1)
- Achieve Group operating margin around 6.0%
- Generate a positive Automotive operational free cash flow
 In order to analyze the change in consolidated revenues at constant perimeter and exchange rates, Groupe Renault recalculates revenues for the current year by applying the average annual exchange rates of the previous year, and excluding significant changes in perimeter that occurred during the year.