PARIS (Reuters) – French carmaker Renault announced an unexpected rise in its quarterly turnover on Thursday, as strong demand for its new, more expensive models helped it offset a drop in total volumes.
Revenue was 10.7 billion euros ($11.55 billion), up 1.8 percent year-on-year and beating analysts’ consensus of 10.35 billion euros. provided by the company.
At constant exchange rates, the group’s turnover is up 5%.
Renault, one of the rare European car manufacturers not to have revised its forecasts downwards in recent weeks in a context of sharp market decline, also confirmed that it is targeting a margin of at least 7.5% for 2024, against 7.9% in 2023.
European carmakers face rising costs and weak demand, as well as stiff competition from Chinese EV rivals, who can produce cars more cheaply than Western companies .
Car sales in Europe fell 18% in August and declined again in September, the first consecutive monthly decline in two years, according to data released Tuesday by the European Automobile Manufacturers’ Association (ACEA). ).
Renault said its global sales volumes fell 5.6% in the third quarter to 482,468 million vehicles, while its European sales fell 5.3% to 328,111 vehicles.
This was better than some of his bigger peers. Stellantis’ consolidated shipments fell 20% in the third quarter, according to preliminary figures, while BMW’s volumes fell 13%.
Demand for Renault’s new range of hybrids, such as the Symbioz and Duster small SUVs, helped offset the overall decline in volumes.
Electrified vehicles – hybrid and 100% electric – represented 47% of Renault brand sales in the quarter, compared to less than 40% a year ago.
“Our third quarter turnover is starting to benefit from our unprecedented product offensive, with 10 new launches this year, representing 18% of our invoices for the quarter,” Renault said in a press release.
That compares to about 5% for new launches in the first half, Chief Financial Officer Thierry Pieton said on a call with reporters, and that pushes up average prices, which will continue to rise through 2025, a- he declared.
Quarterly revenue from its core automotive division came in at 9.35 billion euros, above a consensus forecast of 9.06 billion euros.
It also reported a 21.6% rise in unit financing revenue to €1.34 billion, helped by rising interest rates and an increase in average earning assets.
Renault shares are up 10% this year, outperforming their European peers. German rival Volkswagen, locked in a battle with powerful unions over cost cuts and job cuts, fell 18% and Stellantis fell 42%.
