Sales of Renault-Nissan-Mitsubishi alliance in 2017

Renault Nissan Mitsubishi

  • Combined sales by Renault, Nissan and Mitsubishi Motors rise 6.5% to 10,608,366 units in 2017 one in nine passenger cars and light commercial vehicles sold worldwide
  • Zero-emission leadership maintained with cumulative sales of 540,623 electric vehicles since 2010

PARIS/YOKOHAMA/TOKYO – Renault-Nissan-Mitsubishi, the world’s leading automotive Alliance, today announced that its member companies sold a combined total of 10,608,366 units in the 12 months to December 31, 2017.

Growing demand for SUVs, light commercial vehicles and a rising number of zero-emission pure electric vehicles helped lift unit sales by 6.5 percent in 2017, the first full-year of Mitsubishi Motors’ membership of the Alliance.

Carlos Ghosn, chairman and chief executive officer of Renault-Nissan-Mitsubishi, said:
“With more than 10.6 million passenger cars and light commercial vehicles sold in 2017, Renault-Nissan-Mitsubishi has become the number-one automotive group worldwide. This evolution reflects the breadth and depth of our model range, our global market presence and the customer appeal of our vehicle technologies.”

In 2017, the Alliance member companies sold vehicles in nearly 200 countries under ten brands (Renault, Nissan, Mitsubishi Motors, Dacia, Renault Samsung Motors, Alpine, Lada, Infiniti, Venucia and Datsun).

Groupe Renault’s sales were up 8.5 percent to 3,761,634 units in 2017. It was a record year for Renault, the world’s leading French brand and number-two brand in Europe, and also for Dacia. Renault is seeking continued growth in 2018, buoyed by the development of its international activities and its renewed range, in line with its Drive The Future plan.

Nissan Motor Co. Ltd. sold 5,816,278 vehicles worldwide, up 4.6 percent, and shared details of Nissan M.O.V.E. to 2022, the company’s six-year strategic plan.
In the USA and China in 2017, the company achieved sales growth of 1.9 percent and 12.2 percent respectively. Infiniti sold 246,492 vehicles in 2017, an increase of 7 percent from the previous year.

Mitsubishi Motors Corporation sold 1,030,454 vehicles in 2017, up 10 percent from 2016. The increase in volume was led by China, a key market for Mitsubishi Motors’ Drive For Growth plan. Annual sales rose by 56 percent, to 129,160 units. China became Mitsubishi Motors’ largest market thanks to strong demand for the locally produced Outlander. Performance in the ASEAN region was also strong with an increase of 17 percent to 242,224 units, thanks to the launch of XPANDER – a compact multi-purpose vehicle – in Indonesia. In Japan, sales increased by 7 percent as the marketing of kei-cars resumed.

Sustained leadership in electric vehicles

Since 2010, when the Nissan LEAF was first introduced, Renault-Nissan-Mitsubishi has sold 540,623 electric vehicles worldwide through its different brands. Cumulatively, the Alliance continues as the global leader for 100% electric passenger cars and light commercial electric vehicles.

The Nissan LEAF, the first mainstream, mass-marketed electric vehicle, remains the world’s best-selling EV with more than 300,000 vehicles sold since its launch in December 2010.

During 2017, the new Nissan LEAF was unveiled and offers customers greater range, advanced technologies and a dynamic new design. It went on sale in Japan last year, and will be rolled out in other major markets during 2018. The new Nissan LEAF received over 40,000 orders globally including 13,000 orders in Japan; 13,000 reservations in the United States; and over 12,000 orders in Europe.

In addition to the LEAF, Nissan’s e-NV200, a light commercial vehicle sold mainly in Europe and Japan, has also recently been upgraded with an additional 100km of driving range in Europe.

In 2017 Renault remained, for the third consecutive year, the leader in Europe’s electric-vehicle segment with a market share of 23.8 percent and sales volumes increased by 38 percent. Renault ZOE was the best-selling EV in Europe, with sales increase by 44 percent.

Since 2011, Renault has sold more than 150,000 electric vehicles worldwide, including Renault ZOE, Renault Kangoo Z.E., Fluence Z.E. and Renault Samsung Motors SM3 Z.E.

In 2017, Renault unveiled Master Z.E. thus announcing a range of zero-emission light commercial vehicles unique in the world (Twizy Cargo, company-car version of ZOE, Kangoo Z.E. and Master Z.E.).

In 2017, Renault-Nissan-Mitsubishi sold 91,000 EVs, up more than 11 percent from 2016.

Alliance 2022 strategic plan

As part of Alliance 2022 strategic plan, Renault-Nissan-Mitsubishi is forecasting that annual synergies will exceed €10 billion by the end of 2022. In addition, 12 new zero-emission electric vehicles and 40 vehicles with autonomous drive technology will be launched.

The introduction of new models and new technologies should lift the combined annual sales of Renault-Nissan-Mitsubishi to more than 14 million units, generating revenues expected at $240 billion by the end of 2022.

Top 10 Alliance Markets

Country Total Sales Market Share
China 1,719,815 6.2%
U.S.A. 1,697,149 9.8%
France 759,598 29.8%
Japan 689,650 13.2%
Russia 578,082 36.1%
Mexico 412,029 27.0%
Germany 349,376 9.4%
United Kingdom 309,172 10.6%
Italy 293,362 13.6%
Brazil 267,835 12.3%

Top 10 Groupe Renault Markets

Country Total Sales*
France 673,852
Russia 448,270
Germany 228,046
Italy 215,901
Spain 185,760
Turkey 178,646
Brazil 167,147
Iran 162,079
United Kingdom 115,262
Argentina 115,243

*2017 full year (sales) excl Twizy

Top 10 Nissan Markets

Country Total Sales
U.S.A. 1,593,464
China* 1,519,714
Japan 590,905
Mexico 366,544
U.K. 167,379
Canada 146,677
Russia** 107,168
France 81,293
Brazil 78,823
Germany 76,133

*Including Venucia brand ** Including Kazakhstan

Top 10 Mitsubishi Motors Markets

Country Total Sales
China 129,160
U.S.A 103,685
Japan 91,630
Australia 80,674
Indonesia 79,885
Philippines 71,097
Thailand 69,737
Germany 45,197
U.K 26,531
U.A.E 24,497

Source Nissan Newsroom

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How China is working to strike balance between Growth & Quality; Government to tighten regulations for EV startups

  • China’s Ministry of Industry and Information Technology(MIIT) want to send out a strong signal to the existing and upcoming startups that it is very serious about their quality. Only 10 out of 200 fledgling automakers have a chance to get  the necessary permits.
  • Planning to phase out subsidies after 2020. Generous subsidies created a gold-rush-mentality which encouraged the startups with little to zero technical know-how to enter the auto industry.
  • The country is grappling with air pollution which pressurized the govt to look for and encourage zero emission vehicle technologies. And thus, China Govt heavily subsidized the industry to accelerate the faster adoption of these vehicles by manufacturers and consumers.

Now comes the problem of striking balance between many inversely proportional entities, that is between growth & quality.

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Rapid growth and its outcomes and new challenges

China to curb the ever increasing air pollution from its cities started enacting various measures, of which control of vehicular emissions by promoting EV manufacturers is one.

With an intention to reduce urban pollution & oil dependence, and to promote rapid growth of technology-development, production & consumption of electric vehicles, the government adopted a plan in 2009 to incentivize the industry. Under the plan, government will provide incentives up to 60000 yuan on private purchase of new battery-electric-vehicles and up to 50000 yuan for plug-in-hybrids.The subsidies are paid directly to the manufacturers rather than to the consumers. Subsidies to the particular companies which sold more than 50000 units will be reduced. Adding to the incentives,from 1st January 2012, government started exempting these vehicles from annual taxes. Pure electric vehicles, fuel cell vehicles & plug in hybrids will have 100% exemption whereas non plug in hybrids will have 50% exemption.

1139px-NEV_cum_sales_China_from_2011
Cumulative sales of NEVs in China between January 2011 and March 2016. Source: Wikipedia

As a positive outcome of all these heavy incentives and subsidies, China’s fleet size of New Energy Vehicles(i.e. bevs,fcvs,hybrids&plug-ins) became the second largest in the world after US. As of May 2016 Chinese plug in stock represented 26% of global stock. With a record of 176,627 plug-in passenger cars sold in 2015, China became the world’s best-selling plug-in electric car country market that year, with 34.2% of 2015 global sales.The stock of new energy vehicles sold in China since 2011 passed the 500,000 unit milestone in March 2016. Backed by heavy subsidies, China went on to reach to many milestones.

Parallel to positive outcomes, many new challenges also cropped up. Paying no heed(towards quality,proper technology,…etc) while devising policies led to the birth of many new problems. Attracted by the size of incentives(~60% of sticker price!) many new companies started entering the sector with little to no technical know-how. They started making making low-technology, low-quality, cheaper and unreliable products.

And few companies are producing wrong invoices to government for incentives. The government is investigating reports that two sellers of electric buses doctored invoices to inflate their EV subsidies. In one case, a company called Suzhou King Long claimed to have sold 12,003 electric buses last year, an improbable sixfold year-on-year sales increase. Amid recriminations, a general manager at the company jumped to his death. Local media portrayed the suicide as an admission of guilt, though the company denied any wrongdoing.

New measures to address new challenges

The Ministry of Industry and Information Technology is considering restricting the number of startup EV makers to a maximum of 10, said Dong, who meets regularly with its officials. That count won’t include traditional carmakers such as SAIC Motor Corp. and BYD Co. that are developing NEVs.

Yet even those startups getting permits have more mandates to meet before switching on their assembly lines, as the government introduces stricter quality-control measures.

In a draft policy document posted for public feedback this month, the MIIT listed 17 technologies that companies intending to sell electric cars must possess in order to ensure “healthy” development of the industry. Those include a control system that determines the performance and stability of the NEV, an information system that tracks the sources and conditions of key parts, and a process for recycling or reusing batteries.

The government also plans to phase out subsidies after 2020, removing an incentive for startups depending on them to achieve profitability.The government is now moving from subsidizing production to rewarding companies that devise new technologies and hit sales goals, in the face of widespread media reports of companies taking government money without focusing efforts on the expensive process of EV technology development.

“There’s definitely a bubble,” said Yale Zhang, a managing director and researcher  at Autoforesight Shanghai Co. “If you don’t own the core technology and can’t build up the brand, it’s ‘game over’ very quickly once you burn through the cash.”

Sources & References:

95% of China’s Electric Vehicle Startups Face Wipeout , Bloomberg

Long road ahead for China electric vehicles , Financial Times

Skepticism surrounds China EV boom , Automotive News

In China, air pollution report brings despair, humor , USA Today

China’s ‘airpocalypse’ kills 350,000 to 500,000 each year , The Telegraph

Government incentives for plug-in electric vehicles , Wikipedia

New energy vehicles in China , Wikipedia