Renault revenue rises 9.4% in first half as EV sales drive profit recovery

Renault posted a 9.4% rise in first-half revenue on Wednesday and swung back to profit, driven by strong electric vehicle sales.

"Our EV lineup is gaining traction across Europe, allowing us to navigate an increasingly competitive pricing environment," Chief Executive Officer Luca de Meo said in a statement.

The French automaker's first-half performance marks a sharp turnaround from the year-ago period, when it reported a net loss. Revenue growth was fueled by higher EV deliveries, which offset pressure from incumbent rivals and Chinese newcomers cutting prices across the region.

The results show that Renault is holding its ground in Europe's intensifying EV price war. Investors will watch the second-half outlook for signs that margins can sustain as Chinese brands including BYD and SAIC Motor deepen their European push.

Renault's EV-focused strategy has helped the company weather a broader industry downturn in Europe, where legacy automakers are grappling with margin compression from rising development costs and aggressive pricing by Chinese entrants. The company did not disclose absolute revenue or net profit figures for the period.

The automaker's performance contrasts with some European peers that have struggled to maintain profitability during the transition to electric vehicles. Renault's early commitment to affordable EV models, including the Renault 5 and Scenic E-Tech, has helped it capture demand in the mass-market segment where price sensitivity is highest.

The revenue growth and return to profitability suggest Renault's EV strategy is gaining traction at a critical time for the European auto industry. The company's next test will come as Chinese automakers ramp up production at European factories, potentially intensifying price competition in Renault's core segments.

This article is for informational purposes only and does not constitute investment advice.