RENAULT pared its forecast for a rise in the global auto market this year after disruption from the Japanese earthquake and said Europe, a key market for the French carmaker, will lag the rest of the world.
Renault, whose partner is Japan’s Nissan yesterday predicted a 3-4 per cent rise in worldwide sales volumes in 2011. The group, whose brands also include Renault Samsung Motors and low-cost Dacia, stuck to its forecast for Europe to lag the global trend with a 0-2 per cent fall.
In January, Renault had forecast a rise in the global market of more than four per cent, before the earthquake in March that devastated Japanese automotive parts suppliers and had knock-on effects for the global automotive industry.
Renault shares closed down 1.39 per cent at €37.82.
Renault said it now saw a 4-6 per cent fall in its home market of France, compared with a previous prediction of an 8-10 per cent drop.
The French automaker reported a 1.9 per cent rise in its own first-half vehicle sales, boosted by international growth.
Carmakers are chasing sales growth in booming markets such as Brazil and India as sales stagnate in mature regions like Europe.
City A.M. Reporter