Renault's earnings increased 30% on increased deals and expenses in the initial quarter

April 21, 2023: On Thursday, French carmaker Renault said revenues had grown by 30% in the initial quarter thanks to a rebound in sales and higher expenses.

Increased by the launch of several premium models, which include the electric version of Megane, Arkana and Austral, the group is posting a 14.1% increase in sales to 535,000 units after four consecutive years of declines.

Revenues came in at 11.5 billion euros, in comparison with the Firm’s analyst consensus of 11.08 billion euros.

The carmaker, hit harder than most competitors by the Covid-19 crisis and an international chip shortage, is in the middle of turning over and is betting on increased margins and electric cars to boost profits.

The group is which ramps up the launch of the recent models to spur growth. It is launching an SUV area of its Espace minivan, a restyling of its best-seller Clio city car, and 12 recent models in 2024.

Renault is confirming its targets for 2023, with the group operating margin of at least 6% and an automotive operational cash flow of nearly 2 billion euros.

It said its order book in Europe stood at 3.3 months of sales in Q1 and would remain above the target of 2 months through 2023. Overall sales in Europe increased by 27.3% in the initial three months of the year, outperforming a 16.2% average increase for the market.

Initially mover in the EV race, which struggled due to Tesla’s stellar increase, Renault said it would review prices worldwide earlier this week after its U.S. rival slashed costs in the United States, China and Europe.

Renault ranked as the third EV brand for sales in Europe behind Tesla and Volkswagen the previous year.