Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
Renault Korea’s incoming CEO tasked with balancing sales portfolio
Renault Korea's Grand Koleos SUVs / Courtesy of Renault Korea
By Lee Min-hyung
Renault Korea’s incoming CEO Nicolas Paris / Screen capture from LinkedIn
Renault Korea’s incoming CEO Nicolas Paris is tasked with balancing the carmaker’s sales portfolio by reducing its heavy reliance on the Grand Koleos hybrid SUV and increasing sales in other lines.
Under the leadership of outgoing CEO Stephane Deblaise, the company has charted a solid course for rebound, driven largely by outstanding sales for the strategic model, also known by its project name of Aurora 1.
Accumulated sales for the vehicle topped 45,000 by September last year. The vehicle also accounted for some 90 percent of the firm's total auto sales here in the first half of the year.
The carmaker, however, is in dire need of a more balanced portfolio, since relying on a single vehicle is risky from a mid- to long-term viewpoint, according to market watchers.
Renault Korea also sells the Arkana compact SUV and Scenic E-Tech electric vehicle (EV) in the Korean market, but they are only a minor portion of its sales.
Even if Grand Koleos still maintains its luster as a relatively new vehicle, the carmaker has to brace for the worst amid toughening competition in the domestic hybrid vehicle market and falling market shares for its other less-popular models.
Sales for the Arkana dropped 25.2 percent in the first half to 2,288 from a year earlier. The Scenic is scheduled to make its official debut in August, but the model cannot serve as a major profit driver, as EVs have yet to enter the mainstream. The carmaker plans to import only 999 Scenic EVs from France for its initial sales here.
Renault Korea hopes to continue its positive momentum — created by the success of Grand Koleos — with the introduction of a new car that is being developed to launch next year as planned.
“Renault Korea, which operates its manufacturing facility in the southern city of Busan, needs to maximize the strategic upside by expanding exports for the popular model to as many countries as possible,” an official from the industry said.
Data showed Renault Korea’s auto exports fell 48.9 percent in June from the previous year, while domestic sales soared by 145.6 percent due to the success of Grand Koleos.
Renault Korea began exporting the vehicle to Latin America and the Middle East in May, followed by shipments to Africa starting in June. The carmaker plans to further expand the vehicle’s export destinations in the future.
“The incoming leader also needs to focus on extending the winning streak of the Grand Koleos with the new upcoming vehicle, while at the same time seeking ways to boost sales for the Arkana for a more balanced sales structure,” the official said.