Renault recently showcased its electric vehicle (EV), the Renault Scenic, at the Munich Motor Show in Munich, Germany. The French car maker reported a 1.8% growth in revenue for the first quarter, with strong performance in its financing arm offsetting a decline in core automotive sales. Despite this, the group managed to sell 549,099 units, generating revenue of 11.7 billion euros ($12.47 billion), surpassing company expectations.
The global auto industry is facing challenges this year, particularly as demand for electric vehicles slows down. Competition from Chinese manufacturers adds further pressure on companies like Renault. While sales volumes for Renault’s popular models like the Clio and Twingo saw growth last year after a four-year decline, prices are being impacted by weak global demand. In addition, Tesla’s decision to lower prices in key markets has intensified the competitive landscape for European automakers.
Renault reported a 2.6% increase in sales volumes for 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.