The Renault Scenic electric vehicle (EV) at the Munich Motor Show (IAA) on Tuesday, September 5, 2023 in Munich, Germany.
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French automaker Renault said on Tuesday that first-quarter revenue rose 1.8%, as good performance in its financing business offset a decline in core car sales.
The group sold 549,099 vehicles during the period and generated revenue of 11.7 billion euros ($12.47 billion).
The revenue beat the consensus provided by the company, which was expected to be down slightly from the year-earlier period to 11.49 billion euros.
The global auto industry is bracing for a tough year as demand for electric vehicles slows, creating another challenge for companies already competing fiercely with China.
Sales at Renault, maker of the Clio and Twingo, returned to growth last year after four consecutive years of declines, but prices are under pressure due to weak global demand.
Leading electric car maker Tesla is cutting prices in several key markets, putting more pressure on European companies.
Tesla has lowered the price of its Model 3 in Renault’s home market to $39,990, in line with the starting price of the French company’s new EV Scenic, which has a lower battery range.
Renault said sales rose 2.6% in the quarter, but revenue in its core car business fell as independent dealers destocked more than in the same period last year.
Due to rising interest rates, income from financing activities increased by 27.9% to 1.25 billion euros.
The company reiterated its operating margin target of at least 7.5% this year.
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