Renault Sees Domestic Sales Driven Lower

05 June 2007

PARIS: French automaking giant Renault has failed to make headway in its attempts to recapture domestic market share. Figures for May show the firm suffered a drop of 9.6% in new car registrations compared with a year earlier, contrasting with rival Peugeot-Citroën's 4.5% rise.

Renault's alliance partner, Japan's Nissan, recorded 31.3% lower sales, while sales of the Renault brand alone were down 11.6%.

The French car makers' association CCFA says Renault's share of the overall home market shrank to 22.9% in May, from 24.6% a year earlier.

The company has been tardy in unveiling new models while competition from Asian car manufacturers has also taken its toll. Chairman Carlos Ghosn, however, is optimistic that new products will entice customers in the second half.

Later this month, Renault launches its Twingo mini car (pictured above), for which it has high hopes. The model will go on sale for under €8,000 ($10,769; £5,421), €860 less than the model it is replacing.

Data sourced from Wall Street Journal Online; additional content by WARC staff