Renault SA Sticks to Financial Outlook Despite Market Challenges

Renault SA is sticking to its financial outlook for the year after managing to grow vehicle sales in a challenging market environment. The French automaker saw a 2.9% increase in auto shipments to 564,980 units in the first quarter, driven by strong demand for electric models like the compact R5. Group revenue declined by 0.3% due to negative currency exchange effects and dealers selling down their inventories.

Renault is less impacted by tariffs compared to other automakers like Volkswagen AG and Stellantis NV because it does not sell in the US. The company is primarily focused on Europe, where the passenger-car market saw a slight decline in the first three months of the year. Renault may delay the introduction of its niche Alpine brand to the US due to duties.

Renault CEO Luca de Meo is working on reducing the cost of new electric vehicles through partnerships and speeding up development times with the help of a growing China-based engineering team. The company plans to launch seven new models this year, including the electric Renault 4 and the Dacia Bigster.

Despite market challenges, Renault still expects to achieve an operating margin of at least 7% this year and free cash flow of at least €2 billion. The forecast includes potential impacts from European Union emission rules, which may be relaxed. Renault is also restructuring its alliance with longtime Japanese partner Nissan Motor Co., allowing both companies to further reduce their cross-ownership.

Renault is eyeing growth in India, where it has had a manufacturing presence for 15 years.