French automaker Renault Group announced on Tuesday that its sales volumes increased 3.2% in 2025, as strong demand for its passenger vehicles, particularly overseas, helped offset a plunge in European van sales.

The group, which sells predominantly in Europe, said it sold 2.34 million vehicles in total, with growth of just 0.5% in Europe compared with 11.7% in its international markets, which include South Korea, Morocco and Latin America.

The figures showed no major surprises, with the year-end being broadly in line with expectations, Oddo BHF analysts said in a note to investors.

Growth in the global auto sector picked up in 2025, though manufacturers are still facing challenges, including surplus production and a constantly changing tariff environment.

Sales in Europe were weighed down by a 21% drop in van volumes, as the market slowed and Renault adjusted its product mix.

Passenger car volumes rose 5.9%, growing faster than the market thanks to strong demand for its bestselling Clio and Sandero city cars.

Renault has managed to avoid the impact of tariffs because most of its international sales are in markets where it has local manufacturing, Ivan Segal, global sales and operations director for the Renault brand, told journalists.

"Our growth is driven by strong local production and content," he said, though he added the company did not expect a rebound in the European market in 2026.

Sales of the group's hybrids and electric vehicles grew significantly last year, up 35% and 77% respectively on the prior 12 months.

"Renault Group enters 2026 with a still robust commercial momentum and a highly competitive electrified line-up that should support further market share gain, notably in the higher-margin retail channel," Oddo BHF wrote.

The company reports its 2025 financial results on Feb. 19.