Renault Group realized a turnover for Q3 2023 of €10,5 billion, an increase of 7,6%. Noticeably, the sales increase in cars of 6% in total is mainly due to electrified vehicles, which climbed 22%.

The figures for the year’s first three quarters are even more eloquent, with a turnover of €37,4 billion (+21,1%) and almost 11% more sales. Renault remains confident because its Europe order book remains healthy at 2,5 months of forward sales at the end of September.

That’s why the management expects a Group operating margin between 7% and 8% and a free cash flow superior to or equal to €2,5 billion. Renault Group expects a Group operating margin for the last two quarters (H2) slightly higher than that of the first two quarters (H1), which was at 7,6%.

“Renault Group achieved a strong performance again in the third quarter with total revenue increasing by 13,8% at constant exchange rates. We have entered the last quarter with confidence and confirm the improvement of our profitability in the second half of the year and beyond, driven by our product offensive, along with the benefits of our cost reduction program and our disciplined commercial policy focused on value,” said Thierry Piéton, CFO of Renault Group.

Electrification offensive

The Renault brand recorded a 22% volume increase in electrified passenger car sales in Q3 2023 (compared to Q3 2022 ), accounting for 43% of the brand’s passenger car sales in Europe. Full electric vehicles represented 11% of the brand’s passenger car sales in Europe in Q3 20.

Renault reckons that this momentum will continue to be supported by the Espace E‑Tech Hybrid and the arrival of New Clio with a hybrid engine at the core of its range. From 2024 onward, Renault’s electric line‑up should accelerate the dynamic further, particularly Scenic E-Tech and Renault 5.

Dacia support

Renault sold 357 000 units in Q3 (+11,0%), and Dacia sold 148 000 cars (+2,4%, compared to Q3,2022). In the retail channel (individual buyers), Dacia maintains its 2nd place on the European podium year-to-date.

The Dacia Jogger Hybrid 140 represents 1 out of 4 Jogger orders. Jogger is a crucial product to attract new customer profiles, and its hybrid version supports Dacia’s smooth electrification strategy. Dacia Spring (full electric) recorded close to 16 000 European sales in Q3, 2023.

Alpine recorded over 1 000 sales in Q3, 2023, up 31,0% versus last year’s period.

Look into the future

Renault is looking into the future with confidence. “In the meantime, we are moving fast forward on all our ‘Revolution’ projects, and this quarter was very active. We officially launched Horse and signed the JV agreement with Geely,” Piéton said.

He continued: “The Ampere carve-out will occur in November, and we will present its strategy in detail during a Capital Markets Day on November 15^th. We also announced the Flexis Project with Volvo Group and CMA CGM, a true game changer to tackle the challenges of electrifying LCVs in the urban logistics sector. We are progressively building our next-gen automotive company.”

“Finally, following the signature of the Alliance definitive agreements in July, we confirm that the transaction is expected to be completed by the end of the year, as planned. This will create additional value through common operational projects and allow Renault Group to reallocate part of its capital optimally,”  Thierry Piéton concluded.

Unfortunately, the increase in revenue hasn’t convinced the shareholders entirely. Share value has diminished by 6,79% because the turnover of €10,5 billion was slightly lower than what Bloomberg had forecasted with €10,77.

The shareholders didn’t appreciate the fact that there was a slight decline in volume (-1,6%), even when revenue increased due to selling fewer cars but in higher segments and with more options.