Renault Korea's Filante crossover / Courtesy of Renault Korea
Renault Korea reported a sharp sales decline last month, hit by falling domestic demand for the carmaker’s new strategic Filante crossover and sluggish exports of its other models.
Renault sold a total of 6,199 vehicles in April, down 40.5 percent from a year earlier, as it posted a steep decline in both Korea and overseas markets amid prolonged economic uncertainty and rising fuel costs, the company said.
Domestic sales fell 23.4 percent to 4,025 vehicles, while exports suffered a steeper decline of 58 percent to 2,174 units during the same period.
For the local market, the Filante crossover drove its sales with 2,139 units, followed by the Grand Koleos SUV at 1,550 units. However, Filante’s April sales dropped by more than half from a month earlier, raising concerns that the strategic new model may lose its market traction earlier than expected.
Renault Korea started the delivery of the Filante premium crossover to local customers in mid-March, pinning high hopes on the vehicle as its new revenue driver following the robust success of the Grand Koleos SUV.
Exports also remained sluggish last month largely due to the unstable state of international affairs sparked particularly by armed conflicts in the Middle East.
Renault Korea’s weak sales performance stands in contrast to the solid performance of its rivals, such as General Motors Korea and KGM, which reported sales growth of 14.7 percent and 6.5 percent, respectively, during the same period, on the back of robust exports.
Renault Korea said it will rev up its sales through aggressive promotional campaigns.
“We will boost domestic demand in May by running multiple promotional programs, so our customers can experience our fuel-efficient hybrid lineups,” a company official said. “For overseas markets, Renault Korea will optimize production and shipping schedules to better navigate ongoing global uncertainties.”
Source: Korea Times News
