Renault gains on VW as European car sales surge
Industry-wide registrations increased 6.5% to 15.1m vehicles, the highest level since the 2007 peak, the Brussels-based European Automobile Manufacturers’ Association said.
European leader Volkswagen lost market share with a 3.3% sales gain as demand at its namesake brand declined amid the fallout of the emissions-cheating scandal.
Renault’s deliveries rose 12% by wooing buyers with an updated line-up including a new Megane hatchback, helping it push past French rival PSA. Fiat Chrysler was the fastest-growing major carmaker last year with a 14% gain on demand for Jeep models.
“Customers shifted from Volkswagen to other mass manufacturers, such as Renault and Fiat Chrysler,” said Commerzbank analyst Sascha Gommel.
“The main reason Renault sold more cars has do with its product cycle. They have a very young portfolio.”
The car industry’s European sales growth last year marked the third annual gain since a two-decade low in 2013 caused by the global recession and regional debt crisis.
Further expansion will probably slow sharply, as most consumers who waited to make big purchases now have new vehicles and the fallout from the Brexit vote threatens to erode UK demand.
The region’s car market is set for “far more modest” growth this year, with demand flat in 2018, said Ian Fletcher, analyst at research company IHS Markit.
“Brexit is likely to start becoming a factor over the next couple of years,” he said.
Renault widened its share to 10.1%, overtaking PSA, the Paris-based maker of Peugeot, Citroen and DS cars, which fell to 9.7%. Renault’s worldwide sales rose 13% against 4.6% in the sector.
Volkswagen, which is in the midst of a recall of rigged diesel cars in Europe, remained on top of the European ranking s at 24.1% of cars sold in the region in 2016, compared with 24.8% the previous year.
The company managed to pare the decline thanks to a second consecutive monthly market-share gain in December.
Bloomberg
