Renault unveiled a new Scenic electric vehicle (EV) at the Munich Motor Show (IAA) in Munich, Germany on Tuesday, Sept. 5, 2023. Despite facing challenges in the global automotive sector, with demand for EVs slowing and competition intensifying from China and leading EV maker Tesla, Renault saw a 1.8% growth in first-quarter revenue. The group sold 549,099 units during the period, generating revenue of 11.7 billion euros ($12.47 billion), surpassing expectations.

Renault’s financing business reported strong performance, with revenue from this area increasing by 27.9% to 1.25 billion euros due to higher interest rates. However, revenue from the core automotive business declined by 23%, mainly due to elevated destocking by independent dealers compared to the same quarter the previous year. Despite this decline, Renault reaffirmed its operating margin target of at least 7.5% for the year.

Renault’s new Scenic EV model is priced at $39,990 in its home market, matching the price of leading EV maker Tesla’s offerings in key markets. This intense competition is putting pressure on prices for both companies as global demand for EVs slows down significantly due to various factors such as supply chain disruptions and economic uncertainty. While Renault saw sales volumes increase by 2.6% last year after four years of decline, prices are under pressure due to weak global demand and increased competition from China and other manufacturers offering cheaper alternatives to traditional car makers like Renault and Tesla.

Overall, Renault’s strong financial performance in Q1 was driven by its financing business while sales from core automotive business were impacted by declining turnover due to various external factors such as global economic downturn and rising energy costs that make people opt for cheaper alternatives instead of premium brands like Renault.

However, despite these challenges, Renault remains optimistic about its future prospects as it continues to invest heavily in research and development of new technologies such as autonomous driving systems and connected car features that could help it stay competitive in a rapidly changing industry landscape.

In conclusion, Renault showcased a Scenic electric vehicle at IAA while reporting a rise in Q1 revenue driven by strong performance in financing activity but impacted by declining turnover from core automotive sales due to various external factors affecting demand for EVs globally. The company is facing intense competition from Chinese manufacturers and leading EV maker Tesla but remains optimistic about its future prospects through continued investment in R&D of new technologies that could help it stay ahead of the curve in a rapidly changing industry landscape.