Groupe Renault has set out a six-year plan to grow its global volumes by 40% to over five million vehicles as it targets a 7% margin from revenues of over £62 billion.
Renault Chairman and CEO Carlos Ghosn laid out his plan - which relies upon a rise in revenues of over 25% - in a press conference today, spelling out a strategy which would see the business pursue growth in Russia and emerging markets in China and India.
If successful, the six-year Drive the Future plan would see sales outside Europe grow by 50% leveraged by the introduction of 21 new vehicles – including eight EVs – by 2022.
Through its alliance with Nissan and Mitsubishi the French manufacturer also plans to cut €1bn from its production costs while investing over £16 billion on research and development as it pursues growth in autonomous vehicles and mobility services such as ride-hailing and “robo-taxi services”.
Half of Renault’s cars will be fully electric or hybrid by the end of the plan, according to Carlos Ghosn, Renault’s chairman and chief executive. He said: “Groupe Renault is now a healthy, profitable, global company looking confidently ahead.
“Drive the Future is about delivering strong, sustainable growth benefiting from investments in key regions and products, leveraging Alliance resources and technologies, and increasing our cost competitiveness.
“Supported by the men and women of Renault, this new plan will unleash our full potential to innovate and grow in a rapidly-changing industry.”
The Financial Times reported that Groupe Renault’s shares had risen by 1.48% to €86.87 by midday in London trading.
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