Renault reported a surprising increase in third-quarter revenue on Thursday, driven by strong demand for its new models, including the Symbioz and Duster SUV hybrids. This uptick has buoyed the French automaker’s shares, which rose by 7.6% in early trading, marking the company’s best day in nearly 28 months.
The automaker’s revenues reached EURO 10.7 billion (USD 11.6 billion), a 1.8% increase from the same period last year, exceeding analysts’ expectations of EURO 10.35 billion. At constant exchange rates, revenues surged by 5%.
Renault has managed to maintain its forecasts while many European carmakers have cut theirs due to rising costs and sluggish demand. The company is targeting a margin of at least 7.5% for 2024, slightly down from 7.9% in 2023. Analysts at Jefferies highlighted Renault’s “resilience versus peers” as a key factor in the share price boost.
The European automotive market has faced challenges recently, with car sales declining by 18% in August and continuing to drop in September—the first back-to-back monthly declines in two years. Renault’s global sales volumes decreased by 5.6% in the quarter, totaling 482,468 vehicles, while European sales fell by 5.3% to 328,111. Nevertheless, these figures outperformed some competitors; Stellantis saw a 20% drop in deliveries, and BMW’s volumes fell by 13%.
A significant portion of Renault’s sales growth can be attributed to electrified vehicles, which now account for 47% of its brand sales, up from less than 40% a year earlier. “Our Q3 revenue reflects the impact of our unprecedented product offensive, with 10 new launches this year, contributing to 18% of our invoices for the quarter,” stated Renault’s finance chief, Thierry Pieton, during a call with journalists. He added that average prices are expected to continue rising into 2025.