Renault Weathers Weak European Market Better Than Rivals

Renault’s more premium products are supporting an unexpected rise in its third-quarter revenues.

Strong demand for its Symbioz C-segment hybrid and for its budget sub-brand’s Duster SUV hybrids helped the French automaker post Q3 revenues of €10.7 billion ($11.6 billion), up 1.8% from the same period of 2023 and beating market analysts' consensus forecast of €10.35 billion, Reuters reports.

At constant exchange rates, group revenues were up 5% and Renault, which has not cut its forecasts in recent weeks unlike other major European automakers, also confirms it has targeted a profit margin of at least 7.5% for 2024 compared to 7.9% achieved in more buoyant trading conditions last year.

European automakers are struggling with rising costs and weak consumer demand exacerbated by emerging Chinese importers of cheap battery-electric vehicles that have yet to feel the effects of European Union tariffs.

According to the latest industry data from automotive representative body the European Automobile Manufacturers’ Assn. (ACEA) in August new EU car registrations saw a sharp fall of 18.3% with negative results across the region’s four major markets. These include double-digit losses seen in Germany, down 27.8%; France, down 24.3%; and Italy, down 13.4%.

Renault is not immune from the weakening market and says its global sales volumes fell 5.6% in the third quarter to 482,468 vehicles, with European sales down 5.3% to 328,111 units.

However, this is better than some rivals such as Stellantis, which saw deliveries fall 20% in the third quarter, according to preliminary figures, while BMW's volumes were down 13%.

Electrified-powertrain vehicles, including both hybrids and BEVs, made up 47% of Renault’s sales, up from less than 40% a year ago.

In a company statement, Renault says: “Our Q3 revenue is starting to benefit from our unprecedented product offensive, with 10 new launches this year, representing 18% of our invoices over the quarter.”