Daily Management Review

French Auto Giant Renault Predicts Double-Digit Margin For Its Mobilize Brand By 2027


French Auto Giant Renault Predicts Double-Digit Margin For Its Mobilize Brand By 2027
French auto giant Renault announced on Tuesday that its new Mobilize brand, which is focused on new mobility and data solutions, will seek a double-digit profit by 2030, representing 20% of Renault's overall company turnover.
Mobilize will concentrate on services such as ride hailing, automobile sharing, subscription services, and leasing, in which customers pay for the usage of a vehicle rather than purchasing it completely.
This new business is expected to assist the organisation in turning around its finances. Renault turned a profit for the first time in three years in February. However, in 2021, sales declined for the third year in a row.
"The mission of Mobilize is to be the pivot turning Renault Group towards new mobility and a way to engage on more profitable business, and therefore to create value," said Renault Chief Executive Luca de Meo.
The Chinese-made Limo for ride hailing services, which will debut this year, will be followed by the Duo in 2023 and the Hippo in 2026, according to Mobilize.
In 2024, the Duo will also have a freight version.
"We have decided to cover the sections of the mobility value chain presenting the highest growth and margin potential," said Mobilize CEO Clotilde Delbos.
According to the company, substantial partnerships with major ride-hailing companies will be announced soon.
All four electric vehicles will be manufactured in low-cost countries.
Delbos emphasised that the brand is a service provider, distinct from Renault's ambitions to split its electric car and internal combustion engine activities.
Renault announced earlier on Tuesday that it would sell nearly a third of its Korea operation to China's Geely Automobile Holdings (0175.HK) for $200 million, freeing up capital to invest in its lagging core markets and electric division.