The global car market is probably shrinking faster than expected this year. That is what automaker Renault, which recently also adjusted its own financial forecasts downwards.
According to the French concern, the market is likely to be 4 percent smaller this year. Previously, Renault still counted on a minus of 3 percent. In Europe, the demand for cars is likely to fall by 1 percent compared to an earlier forecast of a flat market. Car sales have recently suffered from weakening economic growth and increasingly stricter environmental requirements.
Renault recently warned that its own turnover and profit margin this year will probably be lower than last year. Renault has also lost more money to comply with all the rules. Last quarter the company saw revenues fall by almost 2 percent to more than 11 billion euros. With over 852,000 units, Renault sold more than 4 percent fewer cars. Among other things, the loss of sales in Iran in August last year put pressure on sales figures.
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