First semester

Renault maintains momentum: top margins and targets confirmed

Despite a difficult market, the company currently has an excellent order book, equivalent to 2.6 months of projected sales

Una Renault Rafale E-Tech ibrida. REUTERS/Benoit Tessier/File Photo

2' min read

2' min read

Excellent results for the Renault Group in the first half of the year. The French manufacturer recorded its highest ever profitability, thanks to lower raw material prices and strong demand for more expensive vehicles such as the Austral and Espace. The operating margin thus stood at 8.1 per cent, exceeding the 7.9 per cent forecast by analysts and 7.6 per cent in 2023. The Boulogne-Billancourt-based company confirmed its target (margin of 7.5% or more) for the full year. Also confirmed for cash flow, at 2.5 billion.

Renault, like rivals Stellantis and Volkswagen, faces a difficult market in Europe, where demand for electric vehicles is slowing down. CEO Luca de Meo is banking on 10 new products this year, including the battery-powered Renault 5, to revitalise sales. So far the market has proved him right, as the share price has gained almost 30%.

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Last week, the transalpine carmaker reported that its first-half sales volume increased by 1.9 per cent compared to the same period in 2023, thanks to the strong performance of hybrid models in Europe, its key region.

Renault returned to growth last year after four consecutive years of declining sales and hopes this year's new launches will keep the momentum going. Demand for electric vehicles has slowed sharply in Europe, with sales up only 1.3% in the first half of the year. In contrast, carmakers are seeing good demand for hybrid vehicles, which are more affordable than battery-powered cars, and are offering more models to meet consumer demand.

The house of Lausanne has also launched new hybrid models and management stated last week that it will continue to do so.

As for Renault brands, the brand is currently number 3 in Europe, leader in France and leader in light commercial vehicles. Dacia is among the top 10 best-selling brands in Europe, with the Sandero as the best-selling car in all channels. Alpine shows strong double-digit growth before new launches.

The group reported first-half sales of EUR 26.96 billion, up 0.4 % year-on-year and exceeding the market forecast of EUR 26.9 billion.

The company stated that it currently has a strong order book, equivalent to 2.6 months of projected sales.

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