Renault's Refocus on Hybrid Powertrains Driving Profit Hike

Renault is sticking to its ambitious full-year profit forecast thanks to better-than-expected first-half results despite the battery-electric-vehicle pioneer weathering a sector slump using more hybrid-powered options for consumers.

The French automaker reports that its first-half sales volume rose 1.9% versus the same period in 2023 thanks largely to its switch of emphasis to hybrid powertrains in its key market of Europe.

Renault reports first-half revenue of €26.96 billion ($29.26 billion), up 0.4% over the previous year and above market forecasts of €26.9 billion. This equates to a higher operating margin of 8.1% for the first half of the year, up from 7.6% a year earlier and higher than the 7.9% expected by analysts. Chief financial officer Thierry Pieton tells reporters on a conference call Renault is sticking to its full-year operating margin forecast of 7.4% or above.

Reuters reports that Pieton declines to comment on whether it can achieve its double-digit profit target by 2030 but adds, “We continue to be ahead of the plan we had set for ourselves.”

Earlier this week CEO Luca de Meo called for a “little more flexibility” in the European Union's planned 2035 ban on combustion-engine models as latest European data shows BEV sales rose just 1.3% in the first half, well behind industry expectations.

Meanwhile, an additional statement from Renault says Nissan's first-half results positively contributed to Renault Group’s second-quarter 2024 net income estimated at €38 million ($41.2 million).