After withdrawing from Russia, Renault's sales fell 30% year-on-year in the first half of the year

According to foreign media reports, on July 12, the French carmaker Groupe Renault said that itscar salesin the first half of 2022 fell sharply due to its withdrawal from the Russian market, its second largest business market.

(Image credit: Renault)

Renault revealed that in the first half of this year, the group's global sales fell 29.7% year-on-year to 1,000,199 vehicles.Excluding the impact of the Avtovaz and Renault Russia businesses, sales were down 12 percent year-on-year.

The Renault brand continues to experience strong growth in electrification: the E-Tech range (electricand hybrid) accounted for 36% of its European passenger car sales in the first half of 2022 (26% in 2021).Renault's C-segment (C-segment) sales increased by 12% compared to the first half of 2021, with Arkana in particular selling over 40,000 units in the first half of this year, with E-Tech (HEV) currently the most popular model.

Renault, which makes popular models such as the Dacia Duster and Renault Clio, closed its operations in Russia amid escalating tensions in Russia and Ukraine and said it would sell its Russian operations and a nearly 67.69 percent stake in Avtovaz.

On May 16 this year, the board of directors of Renault Group unanimously agreed to sign an agreement to sell 100% of the shares held by the Group in Renault Russia to the Moscow city government, and the Group held nearly 67.69% of the shares in Avtovaz at a nominal price of 1 ruble Sold to the Central Scientific Research Institute of Automobiles and Engines of Russia (NAMI).Groupe Renault also added that the agreement provides the group with an option to buy back Avtovaz shares, which can be exercised at specific times over the next six years.

In addition to the impact of its withdrawal from the Russian market, Renault also attributed the drop in sales to a "semiconductor shortage".