Renault expects electric cars and emerging markets to boost sales

French carmaker plans to increase annual car sales to 5 million vehicles by 2022

Carlos Ghosn, chairman and CEO of the Renault-Nissan Alliance: “Our vision now is a profitable core business.” Photograph: Charles Platiau/Reuters
Carlos Ghosn, chairman and CEO of the Renault-Nissan Alliance: “Our vision now is a profitable core business.” Photograph: Charles Platiau/Reuters

French carmaker Renault expects a first-mover advantage in electric cars and a wider range of vehicles for emerging markets to help it deliver a 44 per cent sales increase by 2022.

Electric cars are "turning into a significant contributor to our performance while other automakers are just starting the journey", chief executive Carlos Ghosn said on Friday.

Renault's mid-term plan shows it growing faster than alliance partner Nissan, which it trails in China, due to recent investments in Iran and India and a Russian rebound.

Profitability

While taking a lead in electric vehicles had come at the expense of profitability, Mr Ghosn expects to turn this around with the launch of eight new battery-powered models and 12 hybrids.

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“Our vision now is a profitable core business,” he said. Renault and Daimler’s Smart are likely to extend their small-car co-operation into electric models, he added.

Renault plans to increase annual sales to 5 million vehicles by 2022 from 3.47 million last year while also aiming for a 7 per cent operating profit margin and €70 billion in revenue, goals that were announced in February.