In-Depth SWOT Analysis of Renault – The Leading French Car Manufacturer

Updated on: Nov 3, 2021

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In our earlier article, we had done an in-depth SWOT analysis on one of the world’s best automakers, Suzuki. Here, we have given a detailed SWOT analysis of Renault.

Renault is one of the market leaders in the utility vehicle market. It is a leader in electronic vehicles in Europe and has been in the industry for over 119 successful years. Thus with their vast knowledge, they have been developing exciting products to provide their customers with the latest features.

Renault has been implementing some excellent marketing strategies to attract its customers and make its brand visible worldwide. With the changing of trends, new digital platforms for marketing a company’s products. So if you are interested in learning the latest skills – check out our Free MasterClass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.

Thus this makes us keen to know how Renault became one of the market leaders in the industry, we have covered the topic SWOT Analysis of Renault in detail. So before we begin decoding the answer let us first know about Renault the company and its products, competitors, financial health, and more.

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About Renault

Renault is a french, transnational automobile manufacturer established in the year 1899 by Louis, Marcel, and Fernand Renault. It has its headquarters situated in Boulogne-Billancourt, France, and has a workforce operating in 128 countries as of 2021.

Renault was earlier controlled by the French Government. Besides automobile production, it has additionally been a participant in motor athletics sport from the beginning. Being a leading car manufacturer from the start, in 1963, Renault 8 was the first serial car that had a four-wheel disc brake system.

SWOT Analysis Of Renault | IIDE

It is also known for its role in motorsports, specifically in Formula 1 and Formula E. Its early work on mathematical curve modelling for car bodies was an important factor in the history of computer graphics.

In 2016, Renault was the ninth largest automaker in the world by production volume according to Organisation Internationale des Constructeurs d’Automobiles. The company had revenue of 43.474 billion euro in 2020 with a market share of 4.52% and is ranked 7th in the utility vehicle market share.


Quick Stats About Renault
Founders Louis Renault, Marcel Renault, and Fernand Renault
Year Founded February 1899
Origin Boulogne-Billancourt, France
No. of Employees 1,70,000 employees
Company Type Public
Market Cap €8.97 Billion (2020)
Annual Revenue €43.474 Billion (2020)
Net Loss €−8.008 Billion (2020)


Products of Renault

Renault has been in the market for over a century and has produced different products some of which are:

  • Cars and vans
  • Trucks
  • Buses/coaches
  • Tractors, tanks
  • Auto rail vehicles


Close Competitors of Renault

In the worldwide market, Renault has many different competitors. The top 5 competitors of Renault are:

  • Hyundai
  • Honda
  • Kia
  • Toyota
  • Suzuki

Now that we know about the company. Let us now start with the in-depth SWOT Analysis of Renault.


SWOT Analysis of Renault


Infographics - SWOT Analysis of Renault | IIDE

Through SWOT analysis, Renault can plan strategically and know where it stands in the market by understanding its strengths and weaknesses. They can also find the upcoming opportunities and threats in advance.

Let us now see the SWOT Analysis of Renault one by one by starting with the Strengths of SAP.

Strengths Of Renaults

Strengths are the points of a company that help it stand out of the market and be unique. Following are Renault’s strengths:

  • New strategic plan: With its new strategic plan ‘Renaulution’ which was unveiled in January 2021. Renault has started its ambitious, value-generating transformation. Its goal is to embody modernity and innovation in technology, mobility services, and energy in the automobile industry.
  • Wide range of products: Renault produces a wide range of products which include cars and vans. In the past, it has also manufactured trucks, buses/coaches, tractors, tanks, aircraft and aircraft engines, and auto rail vehicles.
  • Quality product and service: They provide their customers with low costs repairs and are consistently dependable over the years.
  • Concept cars: Renault has been working on concept cars with improved technology. It has shown various all-electric car concepts under the name ‘Z.E’. Thus this keeps them ahead of the competition and is a plus point for them in gaining trust from its customers.

EZ-GO Concept- SWOT Analysis of Renault | IIDE


Weaknesses of Renault

Every company has its own weaknesses and finding them and correcting them is the path to success. Following are the weaknesses of Renault:

  • Lack of presence: Renault lacks in capturing the growing Asian markets despite its European popularity. Thus this makes a negative impact on the company’s growth.
  • Recall of cars: Its recall of cars in the market even for a small span of time has impacted the companies image making its customers reduce trust in the company.
  • Fail of the model capture: Renault’s most recent model ‘Capture’ is meant to be a more premium offering but has struggled to find buyers in India since its launch and this made it discontinue its product in the market. Thus this reduces the market share of Renault in the industry.

SWOT Analysis of Renault


Opportunities for Renault

There are opportunities everywhere, a company needs to find them and utilize them to grow in the market. Here are some opportunities for Renault:

  • Invest in future and hybrid cars: Renault is famous for its Best affordable cars and quality. So it should invest in research of affordable hybrid cars in the future which will help them attract a large audience.
  • Maintain strong fellowship: Renault has its own strong partnership network and its unique expertise in electrification, strengthened by its alliance with Nissan and Mitsubishi Motors. It needs to make a stronger relationship with other companies in the new markets it joins to coordinate and work to bring up new technologies.
  • Market penetration: Renault expanded its dealership networks across India and many other various countries. According to Renault the company’s new dealership expansion further strengthens the brand.


Threats for Renault

With the growing success of a company, it increases the threats to its business. Renault needs to properly tackle the threats to its business. Following are the threats to Renault.

  • Increasing Competitors: There are many new companies entering the market which eventually reduces the market share of the existing companies. This increases the competition in the market for different products with different specifications and creates less chance to be chosen by a customer if the product doesn’t match the customer’s desire.
  • Ecological management: The developing ecological manageability patterns go about as a significant danger when offered items/ administrations are not climate amicable. It draws the negative exposure and analysis from the tree huggers and influences the brand picture in the cutthroat market.
  • Changing policies: The changing administrative system and presentation of new stricter guidelines force a significant danger to Renault. It makes consistency with lawful guidelines more intricate and trying for the business association. Powerlessness to consent to changed guidelines raises the danger of costly claims.

SWOT analysis is the best way for businesses like Renault to find out its plus points and negative points and prepare for the future.

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Renault is one of the leading companies in the utility vehicle market. In the study of the SWOT analysis of Renault, we have seen that it has been providing its customers with technology, mobility services, and energy and has the potential to capture the future hybrid market. Yet currently, Renault still suffers an underdog status because of a lack of marketing strategies deployed.

With the change in customer perception and increasing competition, Renault has been facing problems in creating demand for its products and heavy marketing is a must for them. In a changing landscape of marketing, learning the latest digital techniques is of utmost importance. If you are interested in learning more and upskilling, check out IIDE’s 3 Month Advanced Online Digital Marketing Course to know more.

If you like such in-depth analysis of companies, find more such insightful case studies on our IIDE Knowledge portal.

Thank you for taking the time to read this, and do share your thoughts on this case study in the comments section below.

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Aditya Shastri

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]


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