Renault Revenues Skyrocketed by 30% in the First Quarter

On Thursday, the French automaker Renault announced that its revenue grew by 30% in Q1 amid a sales rebound and higher car costs.

In the recent period, the company reported better-than-expected sales in the first quarter due to massive demand for its new models. It includes Megane, Austral, and Arkana sport utility vehicles. Besides, it said the supply of its key auto parts, such as semiconductors, improved.

Renault’s sales revenue increased to 11.50 billion euros of $12.60 billion. This latest reading is higher than the company’s forecasts of 11.08 billion euros.

Executives confirmed their targets for 2023, with the operating margin expected to hit 6%. Also, the entity’s automotive operational free cash flow is anticipated to reach at least two billion euros.

They added that Renault’s order book in Europe stood at 3.3 months of sales in the last period of the first quarter. It is gauged to remain above its goal of two months this year.

Chief Financial Officer Thierry Pieton added that the company is off to a solid start in 2023. He attributed the robust order book to the launches of Renault’s commercial activity.

Meanwhile, Chief Executive Officer Luca de Meo said he would continue to keep the firm’s stickers elevated. It is despite the easing of a parts shortage caused by the coronavirus’ supply-chain bottleneck woes.

EV Price Cut

Furthermore, Renault announced to reduce in the prices of electric vehicles (EVs), including its Megane E-Tech.

The decision was made to generate the required volume it needs to follow the emission limits in Europe.

A Bank of America analyst said that this move would create a negative impact on the company’s earnings.

In addition, Renau is working to reach a final deal with its Japanese partner Nissan Moto. This collaboration would allow both firms to rebalance their troubled two-decade alliance.