Profitable year-to-date growth by 21%, driven by strategic commercial decisions and aggressive product expansion in Europe
Renault Group, the French automobile manufacturer, has reported impressive sales figures for the third quarter of 2023. The company's worldwide sales reached 511,000 vehicles, marking a 6.1% increase compared to the same period in 2022.
The Renault brand saw a significant boost in electrified passenger car sales, with a 22% volume increase in Q3 2023 versus the same quarter in 2022. The Renault Megane E-TECH Electric recorded 11,500 sales, while the Renault Austral sold close to 21,000 units. The Dacia Spring (100% electric) also performed well, with close to 16,000 sales in Europe during Q3 2023.
The Dacia brand experienced a 16.7% growth over the first 9 months of 2023, resulting in 494,000 units sold worldwide. The Renault Group's best-selling model, the Dacia Jogger, saw the Hybrid 140 variant represent 1 out of 4 of Jogger orders.
Renault Group's inventory levels are at 226,000 vehicles, a decrease compared to 569,000 units at the end of June 2023. This level is in line with the order book, which remains at 2.5 months of forward sales at the end of September.
The company's LCV sales continue to perform well, with a 21.0% growth worldwide on the 9 months and especially in Europe, up 25.5%. Renault Group confirmed its 2023 FY financial outlook, with a Group operating margin between 7% and 8%.
It's worth noting that the Renault Group's consolidated revenue for the current period has been recalculated by applying average exchange rates of the previous period to analyze the variation in consolidated revenue at constant exchange rates. This is due to the 2022 figures including restatements following the first application of IFRS 17 "Insurance contracts".
The top 15 markets for Renault Group at the end of September 2023 have not been specified in the provided text. The automobile brand with the highest sales in France in 2023 was not explicitly stated, so it's not possible to confirm which brand led sales or how its sales changed compared to the previous year.
Independent dealers' inventories stand at 316,000 vehicles. Renault Group expects a free cash flow superior or equal to €2.5 billion. The company also expects a Group operating margin in H2 above H1, which was at 7.6%.
In conclusion, Renault Group has posted strong sales figures for Q3 2023, with significant growth in electrified vehicles and LCV sales. The company remains optimistic about its financial outlook for the remainder of 2023.
