Renault, a French car manufacturer, reported a 1.8% increase in revenue for the first quarter of the year. The growth was mainly driven by strong performance in the financing business, which offset a decline in core automotive sales. Despite predictions of a slight decrease in revenue compared to the previous year, Renault surpassed expectations and sold 549,099 units during this period, generating revenue of 11.7 billion euros.
Renault faced challenges in the global auto sector due to weak demand for electric vehicles and intense competition from China. Although Renault’s sales volumes increased by 2.6% last year, prices were under pressure due to global demand. In this competitive landscape, leading EV maker Tesla has been cutting prices in key markets, putting pressure on European firms like Renault. Tesla’s price cuts have made its Model 3 more affordable, making it comparable to Renault’s new EV Scenic in terms of pricing. Despite these challenges, Renault remains committed to achieving an operating margin target of at least 7.5% for the year.
The financing business saw a significant increase in revenue with a 27.9% rise during the first quarter. Renault will continue to navigate through a challenging market environment while striving to maintain its competitive position in the global auto sector.
In conclusion, despite facing challenges such as weak demand for electric vehicles and fierce competition from China and other manufacturers like Tesla, Renault managed to achieve positive growth in revenue during the first quarter of the year through its financing business while maintaining strong sales volumes and pricing strategy for their new EV Scenic model.
