Renault Posts Profitable First Half Thanks to Surging Electric Vehicle Sales
Renault's Financial Performance and Market Dynamics
By Gilles Guillaume
PARIS, July 29 (Reuters) - Renault posted a 9.4% rise in first-half revenue on Wednesday and swung back to profit thanks to strong electric vehicle sales, as it withstood growing pressure from incumbent rivals and Chinese newcomers on car prices across Europe.
Strategic Model and CEO Commentary
"Our first-half results confirm that our strategic model works, even in a complex environment," Renault CEO Francois Provost told reporters.
Operating Margin and Analyst Expectations
The French carmaker reported an operating margin of 5.2% for the six-month period, down from 6% in the first half of 2025 but above analyst expectations of 5%.
Competition and Margin Targets
Despite increasing competition in Europe from Chinese automakers including BYD and Chery, Renault confirmed its operating margin target for 2026 of 5.5%, versus 6.3% in 2025.
Investment in EVs and Software
As the smallest of the traditional car manufacturers, Renault must preserve its margins if it wants to continue to invest in EVs and new software to compete in Europe.
Electric Vehicle Sales Surge
Renault said its sales of fully electric cars jumped 47.6% versus the same period in 2025. EVs accounted for one out of every five new vehicles it sold.
International Partnerships
In other markets like Latin America or South Korea, Renault is relying on partnerships with other automakers including China's Geely.
Net Profit and Revenue Growth
It posted a net profit of €700 million ($797 million) versus a net loss of €11.18 billion in the first half of 2025 due to a one-time loss of €9.3 billion related to its stake in Nissan.
Its revenue hit €30.25 billion, up 9.4% from €27.64 billion in the year earlier period, helped by making cars at its factories for its partners Nissan and Mitsubishi, Renault said.
Analyst Consensus
According to a consensus provided by Renault, 21 analysts on average expected revenue of €29.4 billion, operating margin of 5% and group share net profit of €770 million in the first half of the year.
Unit Sales and Brand Challenges
The French automaker's new car unit sales dropped 0.4% over the period due largely to logistical problems at its low-cost Dacia brand early in the year.
Additional Information
($1 = 0.8783 euros)
(Reporting by Gilles Guillaume; Writing by Nick Carey; Editing by Emelia Sithole-Matarise)
