Renault recently unveiled its electric vehicle, the Renault Scenic, at the Munich Motor Show in Germany. Despite facing challenges in the global auto industry, particularly as demand for electric vehicles slows down and competition from Chinese manufacturers increases, Renault reported a 1.8% growth in revenue for the first quarter. The French car maker’s strong performance in its financing arm offset a decline in core automotive sales.
Revenue for the group was at 11.7 billion euros ($12.47 billion), surpassing company expectations, with sales volumes for popular models like the Clio and Twingo growing last year after a four-year decline. However, prices are being impacted by weak global demand and Tesla’s decision to lower prices in key markets has intensified competition for European automakers like Renault.
In terms of sales volumes, Renault reported a 2.6% increase in the quarter but revenue in its core automotive business decreased due to higher destocking by independent dealers compared to the same period last year. On the other hand, revenues from financing activities saw a robust growth of 27.9% to 1.25 billion euros, driven by higher interest rates. Despite these challenges, Renault reiterated its operating margin target of at least 7.5% for the year ahead.
