The carmaker has posted a 15% fall in net profit to €17.4bn last year, with group revenues down 3.2% to €41.3bn. Net income fell 19% to €1.7bn and included a one-off gain of €924m from the disposal of its remaining shares in AB Volvo, which enabled it to become debt-free by the end of the year. The net income figure included a €1.2bn contribution from Alliance partner Nissan.

Renault said that its strong increase in sales outside Europe (+9.1%) had failed to offset the decrease in sales in Europe (-18.0%), but added that it would continue with its overseas expansion.

Carlos Ghosn, CEO, said: ‘In a contrasted global automotive market, Renault benefited from the growth of markets outside Europe, which account for over half of its sales. In the difficult environment in Europe, and especially in France, the Group led a rigorous sales policy and began the renewal of its range with the launch of Clio IV. Thanks to the commitments of all its employees, the Renault group is pursuing its strategy of global growth while strengthening its financial situation and delivering a positive Automotive free cash flow.’

The carmaker added that it is targeting market share growth in Europe with new product launches, including Captur, ZOE, Clio Estate, Logan, and the full impact of the new Clio and Sandero launched at the end of 2012. It also said that it would pursue a ‘sustainable pricing policy’, referring to the price war over downbeat European car sales.

Based on current European market predictions, Renault is forecasting an increase in units sales for 2013 along with positive Automotive operating margin and positive Automotive operational free cash flow.

The Renault figures follow this week’s news from PSA Peugeot Citroen of its largest-ever loss of €5bn, following the continued downturn in the European car market, which has led to a €4.1bn writing-down of assets.