Renault's Refocus on Hybrid Powertrains Driving Profit HikeRenault's Refocus on Hybrid Powertrains Driving Profit Hike

Pioneer BEV manufacturer benefits from switch to more hybrid offerings to European consumers.

Paul Myles, European Editor

July 25, 2024

1 Min Read
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Automaker sticks to ambitious full-year profits as hybrids drive sales.

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).

About the Author

Paul Myles

European Editor, Informa Group

Paul Myles is an award-winning journalist based in Europe covering all aspects of the automotive industry. He has a wealth of experience in the field working at specialist, national and international levels.

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