Renault Trucks Reflect on Challenging New Year

RENAULT TRUCKS REFLECT ON CHALLENGING NEW YEAR AHEAD

Renault Trucks in the UK & Ireland have been reflecting on the past 24 months and the new year ahead at a special luncheon held in London and attended by press and media representatives, including Export & Freight.

Managing Director Carlos Rodrigues told the gathering that while the past two years have been full of challenges, he believes it is nothing in comparison to the changes which our industry will face in the coming years. “Our customers are now preparing to become at a point in time carbon neutral – this implies massive investments in the infrastructure, the truck is the easy part, and we are ready to decarbonize road freight on at least 50% of the operations,” he said, adding: “By 2030, 35% of our vehicle sales will be electric in line with the group interim science base targets, and in addition, new competences, both on the sales and aftersales side, will be required, opening up great opportunities for more diversity and more female in the industry.” The past two years, he reflected, had seen dramatic changes in many ways and commented: “As a brand we are no doubt stronger than before the pandemic started. Our overall performance in all business lines is now above 2019 and pre-pandemic levels. “Our strategic agenda is centered around sustainability and electric mobility, with a net-zero commitment, while our dealer network investments have been very strong to increase Renault Trucks’ footprint. “In Europe as well the strategic decision to bring back separate market companies is paying off and market share is increasing. In short Renault Trucks in the UK and Ireland is growing at the right pace to support its customers in the right way.”

New Truck Sales

On new truck sales, James Charnock, Commercial Trucks and Services Director, had this to say: “I think it is fair to say that it has been a great year for Renault Trucks. For the period January-November 2021 our UK Heavy Duty market share has increased to 7% and although we have indeed seen an increase in our tractor unit sales and market share, what is more pleasing is that we also have year on year market share growth in 2, 3 and 4 axle heavy duty rigids demonstrating that Renault Trucks is a serious option for customers in distribution, construction and long haul. “In Ireland, our market share is consistently in double figures and over the same period currently stands at 11.3%.

James Charnock, Commercial Trucks & Services Director Renault Trucks UK.

Carlos Rodrigues, Managing Director Renault Trucks UK.

“I think you will all agree though, it has been a difficult period for our customers. They have had to deal with the uncertainties of Brexit, then the impact of Covid and are now having to work around the long lead times affecting the supply of New Trucks. It has been and remains a challenging time for many in our industry but here at Renault Trucks, and with the support of our dealer network, we have worked closely with our customers throughout these challenges and will continue to do so.” He also revealed that in September 2022 Renault’s Range T, T High, C & K trucks will all be fitted with the new DE11 and DE13 engines delivering improved combustion and improved efficiency. “Customers also have the option to take advantage of our turbo compound technology to create a more powerful and fuel-efficient engine. This in addition to a new generation Optidriver gearbox and a Smart Torque Control Solution that can reduce fuel consumption by up to 10% compared to the current generation of Renault Trucks engines.”

LCV Sales

On sales of LVCs, Grahame Neagus, LVC & Municipal Manager, said that despite the headwinds of the last couple of years, Renault Trucks have continued to grow its LCV business considerably, using the proven success of the strategy developed in 2017. “2021 has seen unprecedented growth of orders being placed and for the first-time volumes of orders are in excess of 4000 units with an anticipated production build in 2022 of between 4100 and 4700 units, a record high for Renault Trucks! These orders have been taken across all of our key sectors of Construction, Logistics, Utilities, People transportation, Refrigeration and our ever-growing Municipal business and with over 90% of those assets delivered, receiving some form of conversion and or body work required. Our market share in this large market is now just under 3% with a desire to see this above 3% in 2022.”

Grahame Neagus, Head of LCV Renault Trucks UK.

Used Trucks

Meanwhile, Peter Tye, Used Trucks & Rental Director, said it has been another good year for the Used Trucks by Renault Trucks business, despite shortage of supply across the whole industry. “We have sold circa 1200 trucks for the 6th year in a row, with 70% of business through our Retail and Dealer channel where we have prioritised this channel to satisfy demand. In the past this has been 50% and has been our strategy to grow to 70%. “As well as our normal route of buybacks and part exchanges we have also purchased direct in what we call ‘Purchase to sell’ transactions to help with supply. We expect current trends to continue in terms of supply particularly in early 2022, but still predict across the whole year to sell similar numbers,” he said, adding, “We are finding customers are prepared to take older and higher mileage trucks.”

Electric Mobility

On electric mobility, Andrew Scott, Head of Electric Mobility & Product Management, said: “Renault Trucks were the pioneers in the field of electric mobility when we brought our first 26t chassis to the UK in June 2020. So, what has happened since then, and how closer to ‘normal’ are electric commercial vehicles today? “Renault Trucks UK continues to set the lead in electric mobility, in terms of product development, ambition and the company’s own actions. We have committed that our Scope 1 and Scope 2 emissions will be reduced to net zero by 2030 (for Renault Trucks UK and Ireland operations, including those of our dealers) and we are fully engaged in Volvo Group’s science-based targets to reduce emissions to net zero by 2050, with all of our vehicles fossil-free at least ten years sooner.”

Aftermarket

Speaking about the manufacturer’s aftermarket performance, Derek Leech, Service Market & Retail Development Director, commented: “The previous 18 months have been a challenge for all of us, but our network has managed to remain open throughout whilst still delivering first class customer experience. The commitment shown by all our dealers has been inspiring and they have remained determined and focussed despite the many challenges they have faced. “The worldwide shortage of raw commodities has also been challenging, but again despite this we have managed to maintain excellent parts availability ensuring that our customers have not been impacted, and overall our network has expanded to 72 dealers, with the introduction of new repairers and significant investment from our current partners and our wholly owned dealer RTC.”