Renault revenue rises despite negative currency hit

PARIS

French automaker Renault reported yesterday a slight increase in revenue in the first quarter as a strong performance in its financing arm made up for a drop in car sales.

Renault Group posted global revenue of 11.7 billion euros ($12.5 billion) in the first three months of the year, up 1.8 percent from the same period in 2023.

"It's the strongest quarter since 2019 in absolute terms," Renault's chief financial officer, Thierry Pieton, said in a conference call.

Its automotive revenue fell 0.7 percent, mainly due to the devaluation of the Argentinian peso and the Turkish Lira, the company said in a statement.

At constant exchange rates, Renault's auto sales were up 3.6 percent in the first quarter.

The company's electric car business also slowed at the start of the year, accounting for 10.5 percent of its total sales compared to 11 percent in early 2023.

"The electric (car) market remains a bit slower than it was predicted two years ago," Pieton said.

The group's financing business posted revenue of 1.2 billion euros, a 27.9-percent jump from a year earlier, pushed up by higher interest rates.

Renault returned to profit in 2023 as sales rose following the release of new models and price increases.