London (Business Emerge), July 25: Renault has reported a higher-than-expected operating profit for the first half of 2024, driven by robust pricing strategies and the introduction of new vehicle models. The French car manufacturer posted an operating margin of 8.1%, an increase from 7.6% in the same period last year and surpassing the anticipated 7.9%.
The automaker’s revenue for the first half of the year reached €26.96 billion ($29.26 billion), reflecting a modest 0.4% increase compared to the previous year and exceeding market forecasts of €26.9 billion. This growth is attributed to strong sales of hybrid models in Europe, Renault’s key market, which saw a 1.9% rise in first-half sales compared to the same period in 2023.
Renault remains committed to its full-year operating margin forecast of 7.4% or higher. The company has also reiterated its long-term goal of achieving a double-digit operating margin by 2030. Despite inquiries during a conference call about the possibility of reaching this target earlier, Chief Financial Officer Thierry Pieton refrained from making any predictions, noting that Renault continues to exceed its planned targets.
After experiencing four consecutive years of declining unit sales, Renault returned to growth last year and is counting on ten new vehicle launches this year to sustain the positive momentum. The company aims to lead the industry in electric vehicle adoption with a plan to transition the Renault brand to fully electric by the end of the decade.
However, the demand for electric vehicles (EVs) in Europe has seen a marked slowdown, with sales rising only 1.3% in the first half of the year, according to regional trade data. In response, automakers, including Renault, are focusing on the growing demand for affordable and practical hybrid models, which has led to the launch of new hybrid vehicles by the company.
Renault’s CEO Luca de Meo has also called for greater flexibility regarding the European Union’s planned 2035 ban on combustion engine vehicles, emphasizing the need for a more adaptable approach to support the transition to electric mobility.