Renault Group Sales Increase 4.3% in a Global Market Up 0.8%

July 9, 2008 -- “Amid a global economic slowdown that had a particularly strong impact on automotive markets in the industrialized countries, the Renault group pursued the growth started at the end of 2007,” said Patrick Blain, Executive Vice President, Sales and Marketing.

2008 Renault Koleos

Highlights:
• The Renault group’s world sales rose 4.3% in first-half 2008 to 1,325,504 units. The Group increased its global market share by 0.2 points to 3.8%.
• Renault brand sales rose 4% and Dacia sales increased 13.3%. Renault Samsung Motors sales fell 7.2%.
• The Group pursued its international growth, increasing sales outside Europe by 15% to 460,526 units, representing nearly 35% of total Renault group sales.
• The first half of 2008 was marked by the launch of five new products: Clio Grand Tour, Grand Modus, New Kangoo passenger car and LCV, and Logan Pick-Up.
• Sales of Renault and Dacia entry-level vehicles increased by over 60.9% to a total 256,756 units.

France & Europe regions: Group sales resilient in a contracting market
In a highly competitive European market that contracted 2.2%, the Renault group increased its market share by 0.2% to 9.1%, selling 864,978 vehicles (PC and LCV)2.

In France3, Renault group registrations rose 8.1% in a market that increased 4.6%. The Renault brand confirmed its leadership position with a 6.5% increase in new car registrations to 337,369 units, for market share of 24.4% (PC and LCV). Dacia registrations rose 43.2% to 21,363.

In Europe4, Renault claimed a market share of 8.6% (PC and LCV). Renault led the LCV market with a 14.1% share. Dacia continued its growth, with sales up 33.4% to 51,179 vehicles.

In Germany, Group sales increased by 15%, outpacing market growth of 3.7%. Group sales also rose in the dynamic markets of the Netherlands (+17.9%), Belgium (+11.7%), Switzerland (+20.7%), Austria (+14.8%) and Poland (+18.4%). Sales were down 22% in Spain and 12.2% in Italy in markets that fell significantly. In the UK, they shrank by 13.1% in a contracting market impacted by an unfavorable sterling-euro exchange rate.

The Renault group launched seven new products in Europe5 in the past six months: Laguna Estate, Clio Grand Tour, Grand Modus, New Kangoo PC and LCV, Koleos and Sandero.

Twingo II is a success. Sales more than doubled (compared with Twingo I and II) in the first six months of the year, for a total of 72,700 units sold.

The launch of Grand Modus alongside Modus Phase II boosted sales of the Modus family to 43,939, up 33.4%.

Clio Grand Tour, a new model in the Renault range, is attracting new customers. Renault has already sold 27,000 units.

Koleos, Renault’s first 4x4 crossover, was launched on June 12.

Laguna III sales totaled 59,500, 60.4% higher than those of Laguna II in first-half 2007. Renault has sold more than 25,200 units of Laguna Estate since launch in January, accounting for over 42% of sales of the Laguna family. Laguna GT4RD, launched in first-half 2008, received a warm welcome from the first customers and the sales network. However, the Laguna program has fallen short of our initial forecast.

Sales of Kangoo I and II (PC and LCV) rose 7.8% to 81,154, of which 39,225 Kangoo II units. Sandero has arrived in Europe. It was launched on June 20 in Germany and Austria and on June 27 in France, Italy, Poland, and the Netherlands.

Euromed region: first-half sales hit a new high
In the Euromed region, where markets grew 28.1%, Group sales (PC and LCV) rose 8.7% to a total 213,939 units, thanks to a good performance by the Renault brand.

In Russia, amid market growth of 32.3%, Group sales increased 25.3% to 56,590 units. Logan is the best-selling foreign hatchback sedan in this country. However, we are losing market share because we cannot respond to demand until the planned increase in output capacity becomes effective. Russia and Ukraine posted record sales in first-half 2008 at over 65,000 units.

The Group continued to lead the market in Romania, selling 58,403 vehicles for a 35.6% market share, driven notably by the Logan range. Dacia confirmed its position as the number-one brand with 28% of the market.

The Renault group increased its sales in the growth markets of Algeria and Morocco, with a 20.3% rise in Morocco and a 34.5% leap in Algeria, setting a new sales record. The Group retained its leadership in Morocco with 29.8% market share.

In Turkey, the Renault group sold more than 39,000 vehicles in a market that expanded 12.6%. Renault continued to head the passenger car market with 26,662 units sold. Sandero was launched in Romania on June 20 and in Bulgaria and Turkey on June 27.

Americas region: strong growth of 17.7%
In the Americas region, in buoyant markets averaging 12.3% growth, the Renault group’s growth momentum continued with a sales increase of 17.7%, driven by Brazil and Argentina. Group sales in Brazil practically doubled to a new record of 58,792 units. With market share up 1.4 points to 4.4%, Renault became one of the top five brands in Brazil. In Argentina, sales increased 8.3% to 40,071. Renault’s market share remained high at 12.6%.

Sandero, thus far launched in Brazil and Argentina, is enjoying huge success. Some 21,226 units have been sold in Brazil and Argentina since its launch. In first-half 2008, nearly 31,000 Logans were sold in the region as well.

Asia-Africa region: 25.4% growth
Group sales grew strongly in this region. Up 25.4%, they considerably outpaced market growth of 3.6%. The Renault brand increased sales by 90.3% to 55,425 units.

In India, the Group sold 12,700 Logan units in the first half of the year. Launched nearly one year ago, Logan is one of the top-three sellers in its segment.

In Iran, nearly 24,000 Tondar 90 (Logan) units were delivered in first-half 2008, but production remains significantly lower than customer demand and our objectives.

Renault sales also increased in several other countries, up 27% in Israel, 22% in Saudi Arabia, 26% in French-speaking Africa, 27% in English-speaking Africa, and 92% in Lebanon.

In South Korea, Renault Samsung Motors (RSM) sales fell 7.5% to 52,559.

Overall sales for the group rose 4.3% in first-half 2008. The total 1,325,504 units can be broken down by brand as follows:
- Renault brand world sales increased 4% to 1,144,524 units.
- Dacia world sales increased 13.3% to 127,276 vehicles.
- Renault Samsung Motors sales fell 7.2% worldwide to 53,704 units (mainly in South Korea).

The QM5 launch has yet to reach sales objectives.

As part of the partnership agreement signed on February 28, 2008 with the Russian manufacturer AvtoVAZ, the Renault group incorporated sales of the Lada brand from March 2008. From March to June 2008, the Lada brand sold 271,919 vehicles.

Outlook
The impact of the seven new model launches in the first half of the year will intensify in the second half of the year.

The product offensive will continue in second-half 2008 with Laguna Coupé and the start of the Mégane family renewal. Sales growth will be strong outside Europe, driven by all Group brands.

Globally, the conditions are right for Renault to pursue growth in the second half of the year. But the rate of this growth will depend to a large extent on economic and financial developments, still highly uncertain, and their impact on the main automotive markets, notably in Europe and particularly in France.

1 Provisional figures at July 1
2 PC and LCV: passenger cars and light commercial vehicles
3 France: see press release on sales results from July 1, 2008
4 France region + Europe region
5 France region + Europe region

Source: Renault

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