Kia Motors has recorded its best-ever European* half-year sales surpassing 250,000 Units.

• Six – month sales record – 251,472 units sold; a 9.5 per cent year – on – year rise
• Market share increase to 3.0 per cent
• The UK representing 20 per cent of sales
• Hybrid and electric cars account for 7.5 per cent of 2017 sales, up from one percent in 2016
• New models and electrified powertrains drive growth

Kia Motors has recorded its best-ever six-month sales period, with European* half-year sales surpassing 250,000 for the first time in the company’s history, with UK sales representing 20 per cent of sales at 50,000 units.

The latest data released today by ACEA (European Automobile Manufacturers’ Association) shows that Kia sold 251,472 units across Europe during the first six months of the year, a 9.5 per cent rise, year-on-year. In addition, Kia’s cumulative market share climbed to 3.0 per cent, up from 2.8 per cent (229,585 units) during the first half of 2016.

The second quarter of 2017 also represents Kia’s best-ever quarterly sales, with 126,485 units sold (+6.3 per cent compared to Q2 2016, with 118,985 units sold). This is the second time Kia has broken its quarterly sales record this year – between January and March 2017, Kia sold 124,987 units across Europe.

Michael Cole, Chief Operating Officer of Kia Motors Europe, commented: “Our growth has been boosted by new models launched in the last few months, and our growing range of vehicles with electrified powertrains. Alternatively-fuelled vehicles have accounted for 7.5 of our European sales so far this year, up from just one per cent in the first six months of 2016. This trend will continue as we expand our electric and hybrid model line-up, and as consumer demand continues to shift towards advanced powertrains."

Cole added: “Four Kia models in particular stand out with high sales growth so far this year. The new Rio and Picanto were introduced earlier in 2017, and are both outselling their predecessors. The Niro hybrid crossover proves appeal of a car that uniquely combines an advanced hybrid powertrain with a smart compact crossover design. Sales of the renewed Optima range, with new GT, Sportswagon and Plug-in Hybrid variants, have also been positive, more than doubling sales of the previous model.”

In the UK Sportage continues to dominate sales with 21,573 units sold. The all-new Picanto comes in second with 7,292 units sold, followed by the Rio and Cee’d in third and fourth place.

Seven-fold increase in sales of electrified Kia models

Vehicles with all-electric or electrified powertrains represent the greatest area of growth for Kia sales in Europe. Since the start of 2017, the new Kia Niro hybrid crossover has accounted for 16,002 unit sales, making it Kia’s fifth best-selling European vehicle (after the Picanto, Rio, Sportage and cee’d model family).

In total, electrified and all-electric Kia vehicles accounted for 18,804 unit sales in the first half of 2017, up from 2,398 units from January-to-June in 2016 (more than a seven-fold increase in sales). The Niro was joined by the new Optima Plug-in Hybrid sedan (428 units) and Soul EV (2,272 units).

Hybrid and electric sales are due to grow further throughout the year, as the new Niro Plug-in Hybrid and Optima Sportswagon Plug-in Hybrid – with greater all-electric, zero-emissions range from their larger batteries – are due on sale over the summer. These latest models ensure Kia remains on target to achieve its global aim for 2020 – to improve fuel efficiency by 25 per cent compared with 2014 levels.

Two new compact models – the all-new Rio and Picanto – were also launched at the start of the year, with each resulting in greater sales than their predecessors. Combining run-out sales of the old models and those of the new model, Rio sales have grown 15.1 per cent year-on-year (41,139 units), while sales of the A-segment Picanto grew 23.2 per cent year-on-year (to 34,880 units).

Optima sales have also seen an increase, with the creation of the new Sportswagon body style and new powertrain options, including a high-powered GT model, and Plug-in Hybrid variants. Optima sales so far this year stand at 8,371 units, a rise of 153.8 per cent compared to the same period in 2016 when the previous generation was on sale.

Volvo see's sales, revenues and profits all raise in the first half of the year, January-June

Volvo Cars, the premium car maker, has reported strong growth in operating profit of SEK6.8bn in the first half of 2017, compared with SEK5.6bn for the same period last year, after taking market share across Europe and experiencing a robust sales increase in China.

Revenues rose to SEK99.1bn from SEK84.2bn in the first six months of 2016, while the operating profit margin improved to 6.8 per cent from 6.6 per cent a year earlier, even as the company continues to invest heavily in new cars and technologies.

Sales for the first six months of the year increased 8.2 per cent compared with the same period last year to 277,641 cars. The first-half increase in sales means Volvo Cars remains firmly on course for a fourth consecutive record year.

“We have reported strong profits at the same time as making ongoing investments in our transformation,” said Håkan Samuelsson, president and chief executive. “Our momentum continues to build.”

During the first half of 2017, the company took market share in the EMEA region, following healthy growth in several key markets. Sales were up by 6.6 per cent during the period.

In the Asia Pacific region and China in particular, Volvo outperformed the market. Sales in the region increased by 22.6 per cent, while China sales were up 27.6 per cent.

In the US, Volvo Cars expects to report solid full-year growth after a strong second half of the year. Delivery constraints affected first-quarter sales, but a return to growth during the second quarter and the impending start of delivery of the new XC60 mid-size SUV point to a stronger finish.

“Globally, we expect the pace of growth generated in the first half of the year to continue. We are confident we will report another record year in terms of sales,” said Mr. Samuelsson.

Later this year, Volvo Cars will launch its all-new XC40, its first entry into the fast-growing small premium SUV segment, completing the company’s SUV line-up

Skoda celebrates the first half of the year and sales are flying high, with June the best one ever.

• Deliveries record: from January to June, ŠKODA achieves 585,000 deliveries worldwide
• Best June of all time: 105,200 deliveries (+6.5%)
• International success: ŠKODA grows in Europe and Russia
• Successful models: deliveries increase for SUPERB and FABIA; OCTAVIA remains brand’s bestseller
• Good market launch for ŠKODA KODIAQ: 27,100 deliveries since February

ŠKODA has continued to grow in the first half of the year. The long-established Czech brand recorded 585,000 deliveries to customers worldwide in the first six months – thus surpassing last year’s record result by 2.8 per cent (January to June 2016: 569,400 vehicles). 

105,200 deliveries in June are also an all-time peak in sales (June 2016: 98,800 vehicles). Positive development in the core market, Europe, and a two-digit rise in deliveries in Russia contribute to the record result, as do the significant increases in deliveries for the ŠKODA FABIA and SUPERB model ranges. 

With 27,100 deliveries since February, the new ŠKODA KODIAQ SUV is having a successful start in markets worldwide. 

"Having delivered well over half a million cars, we have achieved the strongest half-year in ŠKODA's history," says ŠKODA CEO Bernhard Maier, adding: "Our SUV campaign is proving effective. The high demand for the ŠKODA KODIAQ has exceeded our expectations and confirms that we are on the right path. We will continue to strengthen our position in this crucial segment with the new ŠKODA KAROQ compact SUV." 

With 45,900 deliveries to customers in June, ŠKODA recorded an increase of 2.1 per cent in Western Europe (June 2016: 45,000 vehicles). In the first half of the year, the brand improved deliveries by 4.1 per cent to 252,300 vehicles (January to June 2016: 242,500 vehicles). 

In Germany, ŠKODA’s strongest individual European market, deliveries increased in June by 0.7 per cent to 17,300 vehicles (June 2016: 17,200 vehicles). In the first six months, deliveries in Germany rose by 1.8 per cent to 88,000 units (2016: 86,500 vehicles). ŠKODA achieved double-digit growth from January to June in Italy (13,600 vehicles; +18.4%) and Austria (12,900 vehicles; +13.7%). 

Deliveries also increased in the United Kingdom (43,500 vehicles; +3.1%), Spain (13,500 vehicles; +2.5%), France (13,400 vehicles; +8.9%), Belgium (11,400 vehicles; +6.7%), Sweden (8,900 vehicles; +8.4%), and the Netherlands (7,700 vehicles; +1.7%).

In Central Europe, ŠKODA delivered 19,200 vehicles in June, an increase of 11.4 per cent (June 2016: 17,200 vehicles). In the first half of the year ŠKODA recorded double-digit growth of 14.0 per cent to 109,800 vehicles (2016: 96,300 vehicles). In its home market of the Czech Republic, the manufacturer increased deliveries in June by 8.3 per cent to 8,900 vehicles (June 2016: 8,200 vehicles) and in the first six months of the year by 10.9 per cent to 51,200 vehicles (2016: 46,200 vehicles). 

From January to June, deliveries also grew in Poland (34,600 vehicles; +17.2%), Hungary (6,200 vehicles; +10.0%), Slovenia (3,900 vehicles; +16.2%), Croatia (3,200 vehicles; +59.9%) and Slovakia (10,700 vehicles; +11.1%).

With 3,800 vehicles in Eastern Europe, excluding Russia, ŠKODA surpasses last year’s level by 14.9 per cent (June 2016: 3,300 vehicles). In the entire first half of the year, growth is similarly strong with 13.0 per cent. ŠKODA delivered 19,300 vehicles in this period (2016: 17,000 vehicles). Contributing to this positive result were the developments in Romania (5,200 vehicles; +8.0%), Serbia (3,200 vehicles; +6.3%), Ukraine (2,600 vehicles; +65.9%) and the Baltics (3,900 vehicles; +23.0%).

In Russia, ŠKODA recorded a two-digit increase of 17.9 per cent (5,700 vehicles) compared to the same month last year (June 2016: 4,800 vehicles). In the first half of the year the manufacturer achieved growth of 6.7 per cent to 28,700 vehicles (2016: 26,900 vehicles).

In China, the biggest individual market worldwide, the long-established Czech brand was able to improve deliveries in June by 5.3 per cent to 23,500 vehicles (June 2016: 22,400 vehicles). This rise meets the manufacturer’s expectations. Tax increases at the beginning of the year for various vehicle segments that ŠKODA is represented in had led to a decrease in deliveries. In the first half of the year, ŠKODA delivered 134,000 vehicles (January to June 2016: 145,800 vehicles; -8.1%).

ŠKODA was able to record a positive result in India, where the manufacturer increased deliveries in June by 42.7 per cent to 1,400 vehicles (June 2016: 1,000 vehicles). In the first half of the year ŠKODA saw double-digit growth of 21.7 per cent to 7,900 vehicles (2016: 6,500 vehicles).

In Israel, ŠKODA made significant gains. 2,200 delivered vehicles stand for an increase of 41.8 per cent compared to the same month last year (June 2016: 1,500 vehicles). In the first half of the year, the manufacturer recorded a growth of 11.6 per cent to 14,000 vehicles (January to June 2016: 12,500 vehicles). In Australia, the traditional Czech brand performed well in June with growth of 23.8 per cent to 600 vehicles (June 2016: 500 vehicles). 

The deliveries increased from January to June by 5.8 per cent to 9,700 units (January to June 2016: 9,200 vehicles). With 400 deliveries to customers in June, ŠKODA recorded a growth of 4.0 per cent in Taiwan (June 2016: 400 vehicles). In the first half of the year, the brand improved its turnover by 8.2 per cent to 2,400 vehicles (January to June 2016: 2,300 vehicles).

Deliveries of the ŠKODA brand to customers in the first half of 2017 (in units, rounded, by model; +/- in per cent compared to last year):

ŠKODA OCTAVIA (205,300; -6.5%)

ŠKODA RAPID (103,000; +0.4%)

ŠKODA FABIA (111,100; +6.1%)

ŠKODA SUPERB (75,900; +8.3%)

ŠKODA YETI (43,000; -18.0%)

ŠKODA CITIGO (only sold in Europe: 19,700; -1.6%)

ŠKODA KODIAQ (27,100; –)

Deliveries of the ŠKODA brand to customers in June 2017 (in units, rounded, by model; +/- in per cent compared to same month last year):

ŠKODA OCTAVIA (35,000; -2.6%)

ŠKODA RAPID (17,600; -0.8%)

ŠKODA FABIA (19,700; 0.7%)

ŠKODA SUPERB (13,000; +3.7%)

ŠKODA YETI (6,700; -24.9%)

ŠKODA CITIGO (only sold in Europe: 3,200; -20.4%)

ŠKODA KODIAQ (9,900; –)

The Renault group celebrates the first half of the year with increased sales & market leaders.

Groupe Renault sets a half-year sales record with 1.88 million vehicles sold, up 10.4 per cent

• 1.88 million vehicles sold in the first half of 2017, an increase of 10.4 per cent in a market that grew 2.6 per cent .
• All group brands posted increases in sales volumes and market share. The Renault and Dacia brands set half-year sales records. Renault ranks as the second most sold brand in Europe.
• All Regions increased their sales volumes and market share. In particular, the Group recorded a 19.3 per cent rise in sales in the Africa-Middle East-India Region and a 50.5 per cent increase in the Asia-Pacific Region.
• Renault confirms its growth ambitions in 2017, driven by its renewed range, new product launches and the development of its international business activities. 

Groupe Renault PC + LCV registrations worldwide (including Lada) increased 10.4 per cent in the first half of the year, in a market up 2.6 per cent. Group market share now stands at 4.1 per cent (up 0.3 points on 2016). 

The Group and the Renault and Dacia brands set half-year sales records. The group sold 1,879,288 vehicles, the Renault brand 1,342,320 vehicles and the Dacia brand 332,845 vehicles. Renault Samsung Motors sales rose 12.5p er cent and those of Lada rose 12.2 per cent. 

"We set a new record with sales of over 1.88 million vehicles in a six-month period. Our sales volumes and market share increased for all our brands and in all Regions. Our strategy of range renewal and geographical expansion continues to produce results" said Thierry Koskas, member of the Executive Committee and Group Executive Vice President, Sales and Marketing. 

In Europe, group registrations continued to grow faster than the market. They increased 5.6 per cent in a market up 4.4 per cent to a total 1,025,146 in the first half of the year. The Group took a 10.8 per cent share of the European market, up 0.1 points. 

The Renault brand alone posted growth of 4.3 per cent, for a market share of 8.2 per cent. Renault benefited in particular from the complete renewal of the Mégane family in 2016. Clio 4 is the second best-selling vehicle in Europe, while Captur ranks as the number one crossover in its category.

Renault maintained its lead in the electric vehicle segment with a market share of 26.8 per cent. Sales volumes increased 34 per cent. Registrations of ZOE, Europe's top-selling electric vehicle, rose 44 per cent. 

The Dacia brand posted a first-half-year sales record in Europe with 245,453 vehicle registrations (up 9.3 per cent) and a 2.6 per cent share of the market. These results were driven by the performance of Sandero phase 2, launched in late 2016, and Duster. 

In France, the Renault brand achieved its best half-year performance in passenger cars in six years. Twingo, Clio, Talisman and Espace all led their respective segments. Dacia topped its sales record with Sandero, the leader in the market of passenger car sales to retail customers. ZOE remains the clear leader in the electric vehicle market, accounting for almost 70 per cent of electric passenger car sales in France with over 9,200 registrations – a year-on-year increase of over 42 per cent. 

Outside Europe, all the Regions increased their sales volumes and market share. Group registrations rose 16.8 per cent in a market that grew 3.4per cent. 

Groupe Renault strengthened its positions with the success of its range: QM6 and SM6 in South Korea, Kaptur, Vesta and Xray in Russia, Koleos in China, Mégane Sedan in Turkey and Oroch in the Americas. 

In the Africa-Middle East-India region, Group registrations rose 19.3 per cent for a market share of 6.4 per cent, up 1.1 points. 

In Iran, sales rose 100.3 per cent for a market share of 9.8 per cent (up 4 points) thanks to the success of Tondar and Sandero. 

In India, Renault continues to rank as the number-one European car brand, with a market share of 3.3 per cent.

In North Africa, group sales grew 10.1 per cent in a market down 8.3 per cent. The Group took a 43 per cent share of the market, up 7.2 points. 

In Eurasia, registrations rose 8.6 per cent in a market that grew 2.5 per cent. The market share of the Group, now including the Lada brand, increased 1.4 points to 24.5 per cent, notably through strong momentum in Russia. 

Returning to growth for the first time in four years, the Russian market grew 6.9 per cent in the first half of the year. The Group increased its sales by 14 per cent (including Lada). 

Lada sales grew almost twice as fast as the market, increasing 12.8 per cent for a market share of 19.5 per cent (up 1 point), driven by the success of the new Vesta and Xray models.

The Renault brand claimed an 8.5 per cent share of the market, up 0.7 points. Kaptur registrations totaled more than 14,140 units for the half-year period. 

With the consolidation of Lada sales volumes, Russia now stands as the group's number-two market. 

In the Asia-Pacific Region, registrations increased 50.5 per cent in a market up 3.6 per cent. 

In China, Renault sold nearly 36,000 vehicles (compared with 9,771 in first-half 2016), of which 21,000 New Koleos, launched in late 2016 and produced locally. 

Renault Samsung Motors posted a 12.5 per cent increase in South Korea in a market that contracted 4.2 per cent. The brand's market share came out at 6.9 per cent (up 1 point) thanks to the success of the latest product launches (SM6 and QM6). 

In the Americas Region, sales grew 14.6 per cent in a market up 8.3 per cent for a market share of 6.5 per cent, up 0.4 points. Sandero, Logan and Duster Oroch confirmed their success. 

Groupe Renault continued to take full advantage of the market recovery in Argentina, increasing its registrations 45.6 per cent in a market that grew 34 per cent. Market share increased 1.1 points to 13.3 per cent. Renault has benefited from the local production of Sandero and Logan since the end of 2016. 

The market in Brazil grew 4.2 per cent in the first half of the year. The group took advantage of the trend, reporting a 5.1 per cent increase in sales and a 7.4 per cent share of the market. 

MARKET OUTLOOK IN 2017 FOR GROUPE RENAULT 

In 2017, the global market should see growth of around 1.5 per cent to 2.5 per cent. The European market is still expected to grow 2 per cent over the period. The French market is expected to expand by 2 per cent. 

Outside Europe, the Russian market could grow by more than 5 per cent and the Brazilian market by 5 per cent. The growth momentum is expected to continue in China (+5 per cent) and India (+8 per cent). 

In the second half of the year, the Group will continue to take full advantage in Europe of its renewed range and internationally of the momentum of Koleos in China, Kaptur, Xray and Vesta in Russia, QM6 and SM6 in South Korea, and the new SUV range in Latin America. 

Groupe Renault therefore confirms its 2017 sales objectives with growth in sales and market share in Europe and outside Europe. 

The Uk see's a huge increase in Plug in car sales over the first six months of the year.

• Year-to-date electric car registrations up 31.8% versus first six months of 2015
• April to June growth marks 22^nd consecutive quarterly rise for plug-in car uptake
• 19,252 electric cars registered so far in 2016, three months ahead of last year when it took until September to achieve this volume

Motorists in the UK are buying more electric vehicles than ever; with latest figures confirming continual quarterly rises in plug-in car uptake. Since records began in 2011, volumes of electric car registrations have risen steeply as motorists realise the benefits of owning an electric vehicle, which include low running costs, tax savings and a fun driving experience.

In the April-June period of this year, 38.0% more electric cars were registered compared to the same timeframe in 2015*, building on a 27.4% pick-up in the first quarter. 

In addition to these quarterly gains, the first six months of this year pushed electric car registrations 31.8% ahead of the first half of 2015. Plug-in registrations totalled 19,252 for the year-to-date, 4,640 units ahead of the same period last year.

UK electric car registrations January 2011-June 2016 cumulative	Jan-June electric car volumes 2011-2016

The bumper start to 2016 pushes registration volumes close to 70,000 units since government introduced its Plug-in Car Grant in January 2011. The rapid rise in registration volumes show more people than ever are realising the benefits of going electric. 

They are cleaner, cheaper to run, more reliable and with government support worth hundreds of pounds for home charging equipment, drivers can enjoy the convenience of a fully charged car every morning.

Transport Minister John Hayes said: “I am delighted to see record numbers of motorists coming round to the benefits of cleaner, greener vehicles, which are also cheaper to run.  

The low-emission sector supports over 18,000 UK jobs and is a key pillar in our ambition for a low carbon, high tech and high skills economy. We want to make the UK a world leader in electric vehicle uptake and manufacture, to ensure that by 2050 every car and van on our roads is a zero emission vehicle. 

We are backing this with one of the most comprehensive support packages in the world, with more than £600m of government investment to help grow the UK market.”

Poppy Welch, Head of Go Ultra Low said: “The continued growth in uptake of electric cars speaks for itself as registration records continue to be broken by motorists encouraged by the benefits electric motoring can bring. 

As awareness grows and motorists see the wide variety of vehicles already on UK roads coupled with benefits such as running costs from as little as 2p per mile, more drivers than ever are becoming motivated to go green. 

Since the introduction of the Plug-In Car Grant was introduced in 2011 the variety of electric models has expanded significantly, notably so in the past two years, giving motorists more choice than ever before.”

March 2016 was the best-ever month for electric car uptake when, boosted by a registration-plate change, there were 7,440 registrations. June recorded the year’s second highest volume of 3,196 new cars registered, up 23% year-on-year. These strong numbers support the fact that the first six months of 2016 were the highest-volume half-year ever for electric car registrations.

Of the vehicles that have made up these continually-improving figures for the first half of the year, the Mitsubishi Outlander PHEV has proved most popular with 5,738 of the plug-in SUV rolling on to UK roads. The Nissan LEAF remains the most popular pure-electric car with 2,336 first-half registrations in 2016.

Government support has been crucial to driving the success of electric vehicles in the UK. This includes generous purchase incentives including a grant of up to off £4,500 the cost of a new car; tax benefits that could be worth thousands over the life of the car such as the lowest rates of Vehicle Excise Duty and company car tax, as well as support for home and public charging infrastructure contributing to the ongoing rises in uptake.

Go Ultra Low exists to help motorists understand the benefits, cost savings and capabilities of the raft of electric vehicles on the market. The collaborative campaign is the first of its kind, bringing together a consortium of vehicle manufacturers, Government and the Society of Motor Manufacturers and Traders (SMMT).

Electric car registrations	Jan-June 2016	Jan-June 2015	% Change
	19,252	14,612	31.8

USA - Buick continues to build on a sound footing with nearly 700,000 units sold in the first six months of the year.

• Momentum speeds after three years of record global sales 

Among the top automotive brands — those selling more than 200,000 units internationally so far this year — Buick is growing at an unmatched pace. With 675,964 sales through June, Buick ended 2016’s first half up 20.1 percent over the same period in 2015.

In this year of rapid growth, Buick has risen to the fifth-largest passenger vehicle brand in China and is outselling key competitors including Acura, Infiniti and Lincoln in North America.

The growth has been fueled by core international products including the Encore small SUV, which this year surpassed a half-million sales since it was introduced 3.5 years ago. Encore has been a success story in every market, though North America has led the way thus far in 2016 with 36,365 sales through June.

Buick’s award-winning Envision compact crossover concluded its first full month of U.S. sales with 1,436 customer deliveries amid limited availability. A full model range starting at $34,990 launches for the 2017 model year this fall. The Envision has quickly become Buick’s best-selling model sold internationally, followed by Encore and LaCrosse.

Buick’s all-new LaCrosse flagship sedan is launching now. Beautifully crafted and thoughtfully innovative, the 2017 LaCrosse launches globally in the second half of the year as a showcase of design and technology for the brand. More than 950,000 customers worldwide have chosen the LaCrosse since the current model was introduced in 2009.

“2016 has been a year of optimism and excitement for Buick as we’ve outpaced our top competitors,” said Duncan Aldred, vice president of Buick Sales, Service and Marketing. “As new products continue to arrive to our stores, there’s never been a better time to take a fresh look at Buick’s range of premium SUVs and cars.”

Buick’s momentous 2016 has also included the launch of the Cascada convertible in the U.S. market and continued growth for the Excelle GT, Buick’s best-seller in China. Cascada, which offers a lower base price than an Audi A3 convertible but space and power similar to an Audi A5 convertible, has outsold both of those vehicles combined through the first half of the year.

In the U.S., Buick was named KBB’s “Best Value Luxury Brand” for the fourth year in a row.

Renault announces the first half results with significant gains in profits and registrations.

• Group revenues up 13.5 per cent to €25,185 million.
• Registrations up 13.4 per cent to 1.57 million units.
• Group operating profit at €1,541 million (+40.6 per cent), representing 6.1 per cent of revenues, compared with €1,096 million[1], representing 4.9 per cent¹ of revenues in the first half of 2015.
• Automotive operating profit at €1,121 million (+64.9 per cent), compared with €680 million¹ (4.7 per cent of revenues compared with 3.2 per cent¹).
• Group operating income at €1,476 million (+50.6 per cent) compared with €980 million¹.
• Net income at €1,567 million (+7.9 per cent) compared with €1,452 million¹.
• Positive Automotive operational free cash flow of €381 million.

“The first half results demonstrate the relevance of our strategy. Success of our new models, our regional diversification and all employees engagement have allowed the group to set a new record for its first half operating margin and to have confidence in the outlook for the full year”, said Carlos Ghosn, Chairman and Chief Executive Officer of Renault.

In the first half of 2016, Group revenues came to €25,185 million, up 13.5 per cent compared with the first half of 2015.

Automotive revenues amounted to €24,078 million, up 14.3 per cent thanks to an increase in the Group's brand volumes (+10.6 points) and sales to partners (+3 points). The price effect was positive (+3.8 points), primarily due to price increases in some emerging markets to offset currency devaluation (-4.9 points). The mix effect is positive at 1.8 points.

The Group's operating profit amounted to €1,541 million (+40.6 per cent), compared with €1,096 million¹ in the first half of 2015, and represents 6.1 per cent of revenues (4.9 per cent¹ in the first half of 2015).

The Automotive operating profit was up €441 million (+64.9 per cent) to €1,121 million and reached 4.7 per cent of revenues, compared with 3.2 per cent¹ in the first half of 2015. This performance can be explained mainly by strong business growth (€614 million positive impact), higher prices and an improved mix. 

The currency impact is unfavorable (-€432 million), mainly due to the depreciation of the Argentinian peso, the Russian rouble and the British pound. However, raw materials had a positive effect of €164 million. 

The positive mix/price/enrichment effect of €135 million was a marked improvement compared with the first half of 2015, thanks in particular to the success of our new models. 

Cost reductions were affected by the increase in R&D expenses to prepare the future, the decrease in their capitalization rate, and higher than usual start-up costs due to the large number of launches.

Sales Financing contributed €420 million to the Group's operating margin, compared with €416 million¹ in the first half of 2015. This stable profit is related to the sharp increase in loans outstanding, but negatively impacted by adverse currency evolution and the decrease in Americas’ business. However, the cost of risk stabilized at a very good level of 0.30 per cent of the average performing assets (0.31 per cent in the first half of 2015).

Other operating income and expenses improved notably thanks to the drop in expenses related to the competitiveness plan in France. They remained negative at -€65 million versus -€116 million in the first half of 2015.

The Group's operating income came to €1,476 million compared with €980 million¹ in the first half of 2015 (+50.6 per cent). This improvement is due to the increase in the operating profit and the reduction in other operating expenses.

The contribution of associated companies, mainly Nissan, came to €678 million, compared with €895 million^[2] in the first half of 2015. Nissan’s contribution was impacted by a one-off charge booked in Q1. AVTOVAZ contribution is negative at -€75 million versus -€87 million² in the first half 2015, despite a deterioration of the operating result.

Regarding AVTOVAZ, the group confirms its intention to take part in a recapitalization operation before the end of the year, which should result in the consolidation of AVTOVAZ as of December 31, 2016.

Net income came to €1,567 million (+7.9 per cent), and Group share totaled €1,501 million (€5.51 per share compared with €5.06¹ per share in the first half of 2015).

Automotive operational free cash flow was positive at €381 million after taking into account a negative change of €129 million in the working capital requirement.

At June 30, 2016, total inventories (including the independent network) represented 60 days of sales, compared with 66 days at end-June 2015.

OUTLOOK 2016

In 2016, the global market is expected to record growth around 1.7 per cent compared to 2015. The European market, as well as the French one, are now expected to increase by at least 5 per cent.

Outside Europe, the Brazilian and Russian markets are expected to decline: -15 per cent to -20 per cent for Brazil and -12 per cent for Russia. On the contrary, China (+4 per cent to +5 per cent) and India (+7 per cent to +9 per cent) should pursue their positive momentum.

Within this context, the Renault Group (at constant scope of consolidation) confirms its full-year 2016 guidance:

• Increase Group revenues (at constant exchange rates)
• Improve Group operating margin
• Generate a positive Automotive operational free cash flow

GROUPE RENAULT CONSOLIDATED RESULTS 

€ million	H1 2016	H1 2015 restated	Change	H1 2015 published
Group revenues	25,185	22,197	+2,988	22,197
Operating profit % of revenues	1,541           6.1%	1,096        4.9%	+445             +1.2points	1,069 4.8%
Other operating income and expenses items	-65	-116	+51	-116
Operating income	1,476	980	+496	953
Net financial income	-67	-161	+94	-161
Contribution from associated companies	678	895	-217	912
o/w : NISSAN	749	979	-230	979
AVTOVAZ	-75	-87	+12	-70
Current and deferred taxes	-520	-262	-258	-235
Net income	1,567	1,452	+115	1,469
Net income, group share	1,501	1,379	+122	1,396
Automotive operational free cash flow	+381	-52	+433	-95