[PARIS] Renault’s third-quarter sales gained 6.8 per cent, helped by demand for new models such as the Dacia Bigster as well as higher revenue at the company’s financial services arm.
Third-quarter revenue rose to11.4 billion euros (S$17.1 billion), Renault said on Thursday (Oct 23), slightly lagging an average estimate by analysts compiled by Bloomberg. The manufacturer, which stuck to its annual forecast, also said vehicle orders gained in the “high single-digit” range.
Revenue from financial services jumped 18 per cent to 1.6 billion euros, adding to strong third-quarter vehicle sales. Demand for the Renault 5 E-Tech also helped boost automotive revenue by 5 per cent, while destocking at independent dealers partly offset the rise, Renault said.
“Orders are on the rise and there’s a healthy management of our inventories,” chief financial officer Duncan Minto said on a call with reporters. “Still, the competitive environment remains tough.”
The French manufacturer’s new chief executive officer, Francois Provost, appointed in July after the surprise departure of Luca de Meo, is facing intensifying competition and staid car demand in Europe, the mass-manufacturer’s mainstay market.
Days before Provost took the reins, Renault’s profit warning dented investor confidence in the stock. Renault is the third worst-performer in Europe’s Stoxx Europe 600 Automobiles & Parts Index this year.
Provost may target more partnerships outside of Europe to help the French automaker remain competitive with rivals such as Peugeot maker Stellantis and Volkswagen. Renault is also in talks with China’s Chery Automobile to cooperate on carmaking and sales in South America. BLOOMBERG
