PARIS (Reuters) -Renault reported zero growth in second-quarter sales volume on Wednesday, after a plunge in demand for vans in Europe offset growth in passenger cars.

The French automaker, which had warned last week of weaker than expected June sales volumes, said its second-quarter sales were down 0.1%, despite a raft of new vehicle launches.

That compared with growth of 2.8% in the first quarter.

"Throughout the first half of the year, we have seen increasingly fierce competition between players in the European commercial vehicle market," said Ivan Segal, global sales and operations director for the Renault brand, which represents 70% of the French automaker's sales.

"Demand is difficult, we sense an economic context full of uncertainty, certainly leading companies to postpone a certain number of purchases," he told reporters.

Renault is currently being run by its finance chief Duncan Minto as it searches for a new chief executive to replace Luca de Meo, who departed this month.

The company, which will publish its full half-year figures on July 31, also last week revised down its full-year operating margin and free cash flow forecasts.

While Renault brand car sales increased by 8.4% in the first half, thanks in particular to the Clio, a best-seller in Europe, sales of highly profitable vans and light commercial vehicles, which make up a fifth of Renault sales volumes, fell by 29%.

The decline was exacerbated by an unfavourable base effect and an update to its product offering.

Sales of Renault brand electric vehicles jumped 57%, however, outperforming a market that grew by 25%, thanks to the success of the R5 in France, Germany and Spain.

The A290, the new electric model under Renault's Alpine premium sports brand, helped the brand post an 85% jump in registrations in the first half of 2025.

Segal said he expects the Renault brand to regain market share in commercial vehicles in the second half.

He added overall growth would be "in line" with the first half while the brand would see double-digit growth outside Europe.

Renault generates more than 70% of its sales in Europe, which has protected it from the trade disruptions linked to U.S. tariffs but makes it vulnerable to any slowdown on the continent where competition from new Chinese entrants is rising.

Seeking higher growth markets, the Renault brand has been rolling out new models in Latin America, Turkey, Morocco and Korea, which resulted in a 16.3% increase in sales outside Europe in the first half of the year.