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PARIS, July 23 (Reuters) - Renault reported a slight drop in sales volumes for the first half of the year on Thursday, as rising competition in its key European market from new Chinese rivals curbed growth at some of its brands.
The French automaker, whose sales volumes dipped 3.3% in the first quarter due to logistics issues at its low-cost Dacia brand, said it sold 1.17 million cars and vans in the first six months of the year, down 0.4% from the same period of 2025.
"This result, driven by the complementarity of the group’s three brands, reflects improved sales quality, a strong focus on value, and accelerated electrification of the lineup," Renault said in a statement.
In France, its largest market, the company has cut back on lower-margin sales, such as those to short-term rental companies, to focus more on retail customers. This strategy, prioritising value over volume, aims to protect margins amid increasing pressure on pricing.
In Europe, where the French carmaker still generates over 70% of its sales, the Renault brand posted 2.6% growth thanks to the success of the electric R5 model.
However, sales fell 8.7% at budget brand Dacia, hampered by an electric lineup limited to the China-imported Spring.
While Dacia’s sales improved quarter-on-quarter and its compact Sandero remains Europe's best-selling car, Renault said the growth of Chinese brands in Europe is influencing the market.
Demand for electric vehicles, the speciality of several Chinese manufacturers offering highly competitive prices, has accelerated since the conflict in Iran triggered a surge in fuel costs.
The company will publish its full half-year figures on July 30.
(Reporting by Gilles Guillaume and Dominique Patton; Editing by Muralikumar Anantharaman and Subhranshu Sahu)
