In a positive turn of events, Renault, a French automobile manufacturer, announced on Tuesday that its first-quarter revenue increased by 1.8%. This growth was driven by the strong performance of its financing business, which helped offset a decline in revenue from core automotive sales. Despite weak global demand for electric vehicles and competition from Chinese firms, Renault saw a return to sales volume growth last year after four years of decline.
Renault’s core automotive revenue fell in the quarter due to higher destocking by independent dealers compared to the previous year. However, revenue from financing activities experienced significant growth, increasing by 27.9% to 1.25 billion euros, benefiting from higher interest rates. The company has set an operating margin target of at least 7.5% for the year, reaffirming its commitment to sustainable profitability.
Tesla, a major competitor in the EV market, has lowered prices in key markets, increasing pressure on European auto firms like Renault. Despite these challenges, Renault remains focused on achieving its financial targets for the year ahead and continuing to grow its business through innovation and innovation in the automotive industry.