Renault Group has kicked off 2024 with promising results, registering a 2.6% increase in global sales with 549,099 vehicles sold in the first quarter. This growth is supported by a robust 4.3% rise in European markets. The Group’s focus on high-value segments and electrification continues to pay dividends, evident from their significant share of hybrid and electric vehicle (EV) sales which now constitute 48% of their total sales.
The company’s financial performance mirrors this positive trend. Renault Group’s revenue for Q1 2024 reached €11,707 million, marking a 1.8% increase from the previous year, and a more pronounced 5.9% rise when adjusting for constant exchange rates. Despite a slight dip in automotive revenue by 0.7%, adjustments for exchange rates reveal a growth of 3.6%.
Strategically, Renault is maintaining a strong commercial focus on the retail channel, which accounts for 66% of sales, and on vehicles in the C-segment and above, which represent 37% of sales. The Group’s dedication to high trim versions and new technology is evident, preparing for the introduction of ten new models by the end of 2024, including both electric and hybrid vehicles.
Thierry Piéton, Chief Financial Officer of Renault Group, emphasized the strategic moves driving the company’s solid performance. “Our agile approach and strong focus on value creation are paying off, setting a robust foundation for the upcoming product launches,” said Piéton. He highlighted the importance of the new launches and cost reduction strategies that are expected to drive both financial performance and operational excellence in 2024.
In addition to Renault’s strong performance, its subsidiary brands Dacia and Alpine have also reported significant successes. Dacia’s sales in Europe increased by 3.6%, with the Sandero model becoming the best-selling car across all sales channels in the region during the quarter. Alpine, on the other hand, saw a dramatic 88.8% increase in registrations, driven by high demand for its premium A110 coupé.
Looking ahead, Renault Group remains confident in achieving an operating margin of at least 7.5% and generating free cash flow of over €2.5 billion for the full year. With a solid strategy and several new models in the pipeline, including both thermal and electric vehicles, Renault is well-positioned to continue its trajectory of growth and innovation through 2024.
This strong start to the year not only demonstrates Renault’s resilience but also its capability to adapt and thrive in a dynamically evolving automotive industry.
