Renault sees new car sales dip

French car maker Renault say sales of new cars and light trucks fell 4.5% in the first half as demand decreased in a sliding European market.

Renault, Europe's fourth largest car maker, confirmed that strong sales of its new Espace people-mover and Megane mid-sized car, and an upbeat response to its revamped Scenic minivan, should set the scene for market share growth in the second half of 2003.

Renault said total group sales, including its Dacia and Samsung brands, fell to 1,224,953. Renault brand sales slid 5.6% to 1,134,070 units.

But Renault reported the brand had improved its performance in western Europe month on month during the period, with robust sales in June.

The company also said although sales in western Europe fell 6.8%, in the rest of the world they were up 4.4%.

French rival PSA Peugeot Citroen said earlier this week its vehicle sales rose 1.9% in the first half as strong demand outside western Europe offset sagging markets close to home.

Other carmakers have been hit by the weak European market - Germany's BMW posted a 5.5% drop in BMW brand first half unit sales and DaimlerChrysler's Mercedes reported a two percent dip.

Shares in Renault closed at €47.07 on Wednesday.