The French car manufacturer, Renault, recently unveiled its electric vehicle (EV), the Renault Scenic, at the Munich Motor Show in Munich, Germany. Although the company reported a 1.8% increase in revenue for the first quarter, its core automotive sales declined while strong performance in its financing arm offset this decline. Despite this, Renault managed to sell 549,099 units and generate revenue of 11.7 billion euros ($12.47 billion), exceeding 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.
