The two most important members of the Alliance, Renault and Nissan, posted very different results for Q1 2025. Renault holds strong in a challenging environment, while Nissan is struggling to survive and is still looking for a partner.

Renault Group recorded 564,980 sales in 2025 Q1, up 2.9% versus 2024 Q1. In Europe, Group sales were up 2.8%, with 402,413 units sold (PC + LCV) in a market down 2.0%. Renault Group is third in PC + LCV in Europe.

The Renault brand worldwide recorded 389,016 sales in 2025 Q1, up 6.5% versus 2024 Q1. In Europe, the brand increased by +3.8% with 246,036 vehicles sold, in a market down 2.0%.

In Europe, Renault passenger car sales were up 17.7% and strongly outperformed a market down 0.5 %, thanks to the success of Renault 5 and hybrid vehicles combined with the continued growth in C-segment & above.

The Renault brand is 3^rd in PC + LCV in Europe. Growth was exceptionally high in Spain (+38.4% versus 2024 Q1), Germany (+20.9% versus 2024 Q1), and the United Kingdom (+9.2% versus 2024 Q1).

Electrified is the way for Renault

EV sales increased by 87.9% in 2025 Q1 compared to 2024 Q1. The EV mix represented 17.1% in 2025 Q1 versus 10.7% in 2024 Q1. Renault 5 E-tech is the leader in its segment in Europe.

Hybrid sales increased by 46.1% in 2025 Q1 compared to 2024 Q1. Thanks to Clio, Captur, and Symbioz, the brand confirms its second position in the Hybrid European market (HEV). The C-segment and above mix represented 40.6% of passenger car sales for the Renault brand in Europe (+ 4.0 points versus 2024 Q1).

On LCV, in a market down 11.8%, the brand remains second in Europe despite the end of Express’s sales last year (not yet fully offset by Kangoo) and the necessary timeframe to achieve the full product diversity of the new Master.

“In 2025 Q1, Renault Group outperformed the market with a 2.9% growth in worldwide sales despite a challenging environment. The success of our recent launches drives this growth,” said Duncan Minto, Chief Financial Officer of Renault Group.

“In Q1, they represented 28.3% of our invoices and will continue to increase in the coming quarters, thanks to the gradual ramp-up of our new products. By the end of 2025, Renault Group will benefit from the freshest line-up in the European market while expanding its coverage with its International game plan,” he continued.

“The strength of Renault Group also comes from its derisked strategy to offer both electric and ICE & hybrid vehicles, whatever the pace of the energy transition. This agility and flexibility, combined with a strong product offensive, will allow us to benefit from a competitive edge.”

“Cost management continues to be a key priority. The Renault Group has decided to proactively engage in additional cost reduction measures in a volatile macroeconomic environment. These efforts will enhance our competitiveness,”  he concluded.

Nissan, a different story

As a Japanese company, Nissan closed its financial year on March 31st and will publish the official results on May 13th. In light of last year’s problems and the failed deal with Honda, Nissan foresees a net loss of €4.6 billion for the 2024-2025 financial year.

Nissan says the loss is directly related to the cost of the restructuring plans the company is implementing. “A serious investigation into the production activities has resulted in a €3.1 billion depreciation of activities in North and Latin America, Europe, and Japan,” the company states.

Nissan foresees closing the fiscal year with a €11.7 billion debt, the same as last year. The new CEO, Ivan Espinosa, says, “We will continue stabilizing the company. Despite all difficulties, we still have essential financial means and a solid portfolio of models, and we are still determined to cure Nissan in the coming year.”

Difficult circumstances

Of course, the current situation in the automotive industry isn’t solving things. Nissan’s perspectives in the crucial Chinese market are morose (-26% last year), obliging the company to reinvest $1.4 billion by the end of 2026.

And then there’s the tariff war, imposing 25% taxes on cars imported into the U.S. This market represents 30% of Nissan’s total sales, 924,000 vehicles of which 45% are imported from Mexico or Japan.

“The impact will be enormous,” Bloomberg Intelligence analyst Tatsuo Yoshida tells AFP. Eventually, absorbing the surtaxes without passing them on would cost an extra €2.7 billion. Currently, Nissan has a large stock of cars at its American dealers. Also, because sales weren’t that good, Nissan lacks the hybrid models that customers are fond of.

“But transferring its production to the U.S. will take a while and comes at a cost, and it isn’t a miracle solution. I seriously doubt if there is one Japanese manufacturer at the moment that is really considering this critical step. The Trump administration hasn’t shown a lot of consistency on the matter,” Yoshida concludes.

Looking for an ally?

The actual situation will probably accelerate Nissan’s search for a reliable partner. Taiwan’s electronics giant Foxconn seems still interested. It wants to buy part of the shares Renault still owns in Nissan. They represent some 35% at the moment, and Renault wants to reduce them to 15% as foreseen in the new Alliance agreement.

Meanwhile, Nissan has abandoned plans to market two U.S.-made electric sedans and will build a new unidentified EV at its Canton, Mississippi, factory in the U.S. “If I could bring a car tomorrow, that would be the successor to the Xterra,” Nissan Americas Chairperson Christian Meunier said to Automotive News, regarding the SUV that proved to be a surprise hit. “We’re working on it. We’ll find a way, he added.