Renault expects electric cars and developing markets to increase sales

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French automaker Renault anticipates a first-mover benefit in electric automobiles and a broader range of automobiles for emerging markets to help it provide a 44 percent sales boost by 2022.

Electric cars are “developing into a substantial contributor to our performance while other automakers are just starting the journey”, CEO Carlos Ghosn stated on Friday.

Renault’s mid-term strategy reveals it growing much quicker than alliance partner Nissan, which it trails in China, because of recent investments in Iran and India and a Russian rebound.

While taking a lead in electric vehicles had come at the cost of profitability, Ghosn anticipates to turn this around with the introduction of eight new battery-powered models and 12 hybrids.

“Our vision now is a profitable core business,” he stated. Renault and Daimler’s Smart are likely to extend their small-car cooperation into electric designs, he added.

Renault prepares to boost yearly sales to 5 million vehicles by 2022 from 3.47 million last year while also going for a 7 percent operating earnings margin and 70 billion euros ($82 billion) in income, goals that were revealed in February.

Renault stated on Friday that its margin would stay above 5 percent in the intervening years, as it pursues 4.2 billion euros in cumulative performance gains and invests 18 billion euros in research and development.

The business also outlined a new dividend policy, guaranteeing to increase shareholder payments to 15 percent of earnings by 2022, from 7 percent in 2016.

Furthermore, it will continue to go through its own Nissan and Daimler dividends to Renault shareholders. Renault currently owns 43.4 percent of its Japanese alliance partner and 3.1 percent of Daimler.

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