Renault Surprises with 1.8% Q1 Revenue Growth, Despite Challenges in the Global EV Market

Renault, a French car manufacturer, announced on Tuesday that its first-quarter revenue increased by 1.8%. This growth was fueled by strong performance in its financing business, which helped offset a decline in revenue from core automotive sales. The group sold 549,099 units during the period, resulting in revenue of 11.7 billion euros ($12.47 billion), surpassing expectations.

Despite the positive revenue growth, the global auto sector is facing challenges, particularly with the slowdown in demand for electric vehicles. Competition from Chinese firms is intensifying, making it a tough year for many companies. Renault, known for models like the Clio and Twingo, saw a return to sales volume growth last year after four years of decline. However, weak global demand is putting pressure on prices.

Renault’s core automotive revenue fell in the quarter due to higher destocking by independent dealers compared to the previous year. On the other hand, revenue from financing activities experienced significant growth, increasing by 27.9% to 1.25 billion euros, benefiting from higher interest rates.

The company has set an operating margin target of at least 7.5% for the year, reaffirming its commitment to sustainable profitability. Tesla, a major competitor in the EV market, has lowered prices in key markets, increasing pressure on European auto firms like Renault. Despite these challenges