Renault Group’s electric car sales surged by almost 85% in the third quarter of 2026, helping the French manufacturer maintain revenue despite selling 6% fewer vehicles.

But behind these figures lies a growing contrast: Renault’s electric models are gaining momentum, while Dacia is losing ground despite the Sandero remaining one of Europe’s best-selling cars.

Renault reported quarterly revenue of €11.6 billion on Thursday, up 1.5% year-on-year. Automotive revenue remained virtually unchanged at €9.8 billion, while financial services revenue increased 11% to € 1.76 billion.

The group sold 497,799 vehicles worldwide, down 6%. Nevertheless, Renault maintained its full-year forecast of an operating margin of around 5.5% and approximately €1 billion in automotive free cash flow.

Electrification becomes Renault’s strongest asset

The most striking development is the acceleration of electric mobility. Fully electric cars accounted for 25.8% of Renault Group’s European passenger car sales in Q3, compared with just 13.6% a year earlier. Including full and plug-in hybrids, electrified vehicles represented 54.9%.

The Renault brand itself performed particularly well. Its European EV sales increased by 75.2% over nine months, helped by the Renault 5 and the new Twingo E-Tech electric, which has already attracted nearly 26,000 buyers.

Renault also climbed to second place in the European passenger car market. Commercial vehicles provide another bright spot. Renault sold 192,367 light commercial vehicles in Europe over nine months, up 8.1% in a market growing by just 1.1%.

Its electrified van sales increased by 22.9%, while the Master leads the large-van segment. The upcoming electric Trafic should help strengthen Renault’s position in a sector where electrification is progressing much more slowly than among passenger cars.

Dacia’s Sandero paradox

Dacia presents a different picture. Its worldwide sales fell 12.8% in Q3 and 9.7% over the first nine months. Yet the Sandero remains Europe’s best-selling passenger car among private customers, according to Renault, illustrating that a market leader can still lose volume.

The problem is not necessarily that Dacia has lost its appeal. The brand is caught between accelerating demand for electrified vehicles, a changing product cycle, and intensifying competition.

Renault explicitly acknowledges growing pressure from Chinese manufacturers, particularly in the C-segment, where the Bigster competes.

Dacia is responding with the Sandero Hybrid, a renewed Spring, now produced in Europe, and the Striker. Meanwhile, hybrids already account for 24.6% of Dacia sales, while LPG-powered vehicles represent another 39.2%.

LPG not necessarily a disadvantage?

Dacia’s continued reliance on LPG is not necessarily a disadvantage for consumers. At current Belgian fuel prices, a Sandero Eco-G costs roughly €7.30 per 100 km in fuel, less than a comparable gasoline or full-hybrid model.

That’s approximately the same as an EV using public AC chargers. Combined with its low purchase price, this makes LPG an attractive option in terms of Total Cost of Ownership (TCO), particularly for drivers without access to home charging.

Combined with a purchase price starting at €15,590, LPG remains a compelling alternative for budget-conscious buyers without home charging.

The question is how long that advantage will survive as affordable electric cars become more widely available. The challenge is to electrify without sacrificing the affordability that made Dacia successful.

At the other end of the market, Alpine is expanding rapidly. The sports-car brand registered 12,269 vehicles worldwide over nine months, up 65.6% and already exceeding its entire 2025 volume.

The electric A290 accounts for more than two-thirds of sales, while the new A390 is gaining momentum. Significantly, Alpine now sells more cars outside France than in its home market.

Different picture from Stellantis and Volkswagen

Renault’s results contrast with those of its larger European rivals. Stellantis reported a 1% increase in revenue to €37.6 billion in Q3, but still posted a €453 million net loss and an adjusted operating margin of just 0.7%. Europe remains its most problematic region.

Volkswagen faces an even more difficult financial picture. Its quarterly revenue declined by around 6% to €75.3 billion, while exceptional charges, largely related to Porsche and restructuring, contributed to an operating loss of approximately €5.9 billion.

The comparison is not entirely straightforward: Renault has confirmed its full-year margin target but has not published a Q3 operating profit figure. Nevertheless, its outlook appears more stable than those of its larger competitors.

Selling fewer cars, but protecting value

Renault’s approach increasingly prioritizes value over volume. European retail sales rose 5%, while less-profitable short-term rental and demonstration-car sales declined by 18%.

A richer mix of models, including electric vehicles and the new Clio, helped support automotive revenue. However, stronger sales to partners, particularly through Geely in Brazil, also contributed significantly.

That distinction matters: Renault’s revenue resilience cannot be attributed to electrification alone. For now, the French group’s combination of electric cars, hybrids, and disciplined sales channels appears to be cushioning the industry’s turbulence.

Whether Dacia can recover without losing its traditional price advantage will be one of Renault’s next major tests.