PARIS (Reuters) – French carmaker Renault reported an sudden rise in quarterly revenues on Thursday, as sturdy demand for its pricier new fashions helped it offset decrease complete volumes.
Revenues got here in at 10.7 billion euros ($11.55 billion), up 1.8% from a 12 months earlier and beating an analysts’ consensus forecast of 10.35 billion euros offered by the corporate.
At fixed trade charges, group revenues have been up 5%.
Renault, one of many few European automobile producers that has not revised its forecasts downwards in current weeks amid a extreme market hunch, additionally confirmed it’s aiming for a margin of a minimum of 7.5% for 2024. That compares to 7.9% in 2023.
European automobile makers are battling rising prices and weak demand, in addition to sturdy competitors from Chinese language electrical car rivals, which might produce automobiles extra cheaply than Western corporations.
Automotive gross sales in Europe slumped 18% in August and declined once more in September, within the first consecutive month-to-month decline in two years, information from the European Vehicle Producers Affiliation (ACEA) confirmed on Tuesday.
Renault mentioned its world gross sales volumes fell 5.6% within the third quarter to 482,468 million autos, whereas European gross sales have been down 5.3% to 328,111 autos.
That was higher than a few of its bigger friends. Consolidated deliveries at Stellantis fell by 20% within the third quarter, in response to preliminary figures, whereas BMW’s volumes have been down 13%.
Demand for Renault’s new suite of hybrids such because the small Symbioz and Duster SUVs helped it offset total weaker volumes.
Electrified autos – together with each hybrids and absolutely electrical – accounted for 47% of Renault model gross sales within the quarter, up from lower than 40% a 12 months in the past.
“Our Q3 income is beginning to profit from our unprecedented product offensive, with 10 new launches this 12 months, representing 18% of our invoices over the quarter,” Renault mentioned in an announcement.
That compares with about 5% for brand spanking new launches within the first half, CFO Thierry Pieton advised journalists on a name, and is citing common costs, which is able to proceed to rise into 2025, he mentioned.
Income within the quarter at its core automotive division got here to 9.35 billion euros, above a consensus forecast of 9.06 billion euros.
It additionally reported a 21.6% rise in its financing unit revenues to 1.34 billion euros, helped by greater rates of interest and a rise in common performing property.
Renault shares have risen 10% this 12 months, outperforming its European friends. Its German rival Volkswagen, which is locked in a battle with highly effective unions over value cuts and job cuts, has fallen 18% and Stellantis as a lot as 42%.
