Paris (AFP) – Renault said Thursday it managed to post an increase in third quarter revenue, weathering the overall slowdown in auto sales better than many rivals thanks in part to the introduction of new models. Overall revenue at the French carmaker edged 1.8 percent higher to 10.7 billion euros ($11.6 billion) in the third quarter, although auto sales dipped 0.5 percent to 9.3 billion. The results beat analyst expectations.
“The product offensive is becoming visible,” said the group’s chief financial officer, Thierry Pieton. Renault recently launched an electric version of its Scenic MPV and Symbioz and Rafale SUVs. Its budget Dacia brand rolled out an updated version of its Duster SUV. After 10 new models in 2024, Renault plans to launch seven in 2025.
“This appealing and competitive line-up, with both electric and ICE & hybrid vehicles, demonstrates our flexibility to adapt whatever the pace of EV transition and remains a key support for the Group’s performance together with cost reduction,” Renault said in a statement. Renault shares revved more than seven percent higher during morning trading on the Paris stock exchange.
Unlike other automakers, Renault maintained its 2024 financial guidance of a group operating margin of 7.5 percent or higher and a free cash flow of 2.5 billion euros or higher. Pieton said Renault had managed to avoid cutting prices on its cars in the third quarter and said the average should rise considerably with the launch of its R5 electric hatchback.
While electric cars hit a low point of 7.6 percent of overall sales in the third quarter thanks in part to the halt in production of the Zoe and current Twingo electric version, Renault’s electric lineup is set to get some new models. The company said it plans to meet European CO2 emissions targets without throttling its sales of ICE, or internal combustion engine vehicles, thanks in part to an increase in sales of hybrid vehicles, a segment in which it is number two in Europe behind Toyota. Dacia’s entry-level hatchback, the Sandero, remains Europe’s top-selling car.
© 2024 AFP
