Renault’s Q1 Revenue Rises 1.8%, Helped by Financing Business
French carmaker Renault reported a 1.8% increase in first-quarter revenue on Tuesday. The growth was driven by strong performance in its financing business, which offset a drop in turnover in core automotive sales.
The group sold 549,099 units over the period, with revenue reaching 11.7 billion euros ($12.47 billion). The revenue beat a company-provided consensus anticipating a slight drop versus a year earlier to 11.49 billion euros.
Renault’s sales volumes rose 2.6% in the quarter, but revenue in its core automotive business fell as independent dealers carried out higher destocking than in the corresponding year-earlier quarter.
Revenues from financing activity grew 27.9% to 1.25 billion euros, helped by higher interest rates.
The global auto sector is bracing for a difficult year as demand for electric vehicles slows, adding another challenge to companies already battling fierce competition from China.
Leading EV maker Tesla is cutting prices in several key markets, piling more pressure on European firms. Tesla cut the price of its Model 3 to $39,990 in Renault’s home market, matching the starting price of the French firm’s new EV Scenic, which has a lower level of battery autonomy.
