Renault’s Sales in Japan Drop for the First Time in 10 Years

In 2019, Renault’s vehicle sales in Japan fell below the previous year’s results for the first time in 10 years. Until now, Renault has adopted a niche strategy that focuses on unique cars at a price range (1 million–4 million JPY) that is lower than that of German cars. As a result, the number of vehicles sold has increased for nine consecutive years, but the second half of 2019 showed a slowdown in growth.

Renault's vehicle sales in Japan decreased 6.2% year-on-year inn 2019 to 6,805 units. Looking at the sales volume on a monthly basis, it has been declining since June 2019, and has been decreasing by double digits since October when Japan’s consumption tax was increased.

Looking at 2019 sales by model, the best-selling model Twingo decreased 21.8% to 2,042 units. On the other hand, the Kangoo increased 10.3% to 2,386 units and the Mégane increased 32.7% to 1,088 units. Introduced in August 2018, the Mégane R.S., tuned by the automaker’s the motor sports division Renault Sport, contributed to sales expansion. The Kadjar, which was newly launched in April 2018, has been removed from Renault’s product lineup as of April 2020, due to supply shortage to Japan which is attributed to its strong popularity in Europe and elsewhere. Renault plans to launch the new Lutecia (sold as the Clio in Europe) in 2020, becoming the company’s first twin-motor hybrid vehicle in the Japanese market.

Renault aims to raise the number of vehicles sold in Japan to 10,000 units, and plans to activate collaboration with other industries to increase brand recognition.