Renault swings to profit in first half, revenue up 9.4%

French automaker Renault reported on July 29 that its first-half revenue reached 30.25 billion euros (equivalent to 34.43 billion U.S. dollars), up 9.4% from 27.64 billion euros in the same period last year. The growth was driven by contract manufacturing of complete vehicles for partners Nissan and Mitsubishi, as well as the higher selling price of the new Clio model compared to its predecessor. The company achieved a net profit of 700 million euros in the first half, compared to a loss of 11.14 billion euros in the same period of 2025, mainly due to a one-time loss of 9.3 billion euros related to Nissan equity.

Renault’s first-half operating margin was 5.2%, lower than the 6% recorded in the first half of 2025 but above analysts’ expectations of 5%. Additionally, despite intensifying competition from Chinese automakers such as BYD and Chery in the European market, Renault maintained its full-year 2026 operating margin target of 5.5%, compared to 6.3% in 2025.

Relying on strong sales performance of electric vehicles, Renault has withstood competitive pressure from both European rivals and Chinese automakers.

Renault stated that thanks to the outstanding market performance of the Renault 5 model, the group’s pure electric vehicle sales surged 48% compared to the same period in 2025, with electric vehicles accounting for one-fifth of the brand’s total new car sales. However, due to supply chain logistics issues faced by its budget brand Dacia at the beginning of the year, Renault’s overall new car sales edged down 0.4%.

Renault CEO Francois Provost told the media on July 29: “The first-half results confirm that Renault’s strategic model remains effective even in a complex market environment.”

Renault plans to build differentiated competitiveness through new models, such as relaunching the pure electric version of the Twingo city car and introducing the first hybrid version of its Sandero model, which was Europe’s best-selling car in the first half of the year.

As a relatively small player among traditional European automakers, Renault must maintain its profit margins to continue investing in electric vehicle and in-car software research and development, and to establish a foothold in the European market. Renault said it is steadily advancing cost-reduction targets, lowering variable costs per vehicle by approximately 400 euros annually. Meanwhile, in other overseas markets such as Latin America and South Korea, Renault has partnered with automakers like Geely.