This electric car is beating Covid-19 blues and selling by truckloads - watsupptoday.com
This electric car is beating Covid-19 blues and selling by truckloads
Posted 21 Jul 2020 10:08 AM

Source : Hindustan Times

Sales of Renault SA�s all-electric Zoe car jumped 38% in the first half, a rare bright spot amid the grim fallout of the coronavirus pandemic

Most of the deliveries were made in Europe, where the Zoe became the best-selling electric car thanks in part to generous government incentives, the French automaker said Monday in a statement.

Renault�s overall sales in the period fell by more than a third, to about 1.26 million vehicles, because of lockdown measures in countries from Italy to Russia. That�s still better than cross-town rival PSA Group, whose sales dropped 46% to 1.03 million vehicles.

�We are starting the second half of the year with a very high level of orders, a satisfactory level of inventory, a rising price positioning across the entire range," said Denis le Vot, the company�s head of sales and marketing.

Renault was a big beneficiary of subsidies that France -- its biggest market -- implemented last month to get consumers to switch to cleaner cars. In Europe, customers ordered about 11,000 Zoes in June alone, bolstering Renault�s bid to meet more stringent emissions rules this year.

Renault, like its peers, has been hit hard by Covid-19, which shuttered showrooms and factories around the world. The company has announced a sweeping cost-savings plan, and the French government�s aid is aimed at saving jobs in the industry.

Renault�s sales dropped by a fifth in Russia, its second-biggest market, by 29% in India and by 47% in Brazil, according to the statement. A bright spot was South Korea, where sales climbed 51% as buyers snapped up the company�s newly introduced XM3 SUV.

President Emmanuel Macron has implemented a raft of measures aimed at reviving France�s struggling car industry and drawing manufacturing back to local factories. The plan includes purchasing incentives for electric vehicles, cash-for-clunkers aid to encourage consumers to trade in older cars and subsidies for struggling auto-parts makers.

Renault�s new Chief Executive Officer Luca de Meo took the reigns this month after the company announced a plan to eliminate about 14,600 jobs and lower production capacity by almost a fifth.

The cuts include trimming 4,600 positions in France, or about 10% of the carmaker�s total in the country. The plan has sparked an outcry from labor unions and criticism from the state, its most powerful shareholder.

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