Renault Posts First-Half Profit as EV Sales Surge

PARIS — Renault reported a 9.4% increase in first-half revenue and returned to a positive financial result thanks to strong electric vehicle sales, maintaining resilience amid growing pressure from European rivals and new Chinese competitors in the price-sensitive segment.

According to the company, fully electric vehicle sales rose 48% compared with the same period in 2025, driven by the success of the Renault 5. Battery-electric vehicles accounted for one out of every five new vehicles sold.

CEO François Provost told reporters on July 29 that the first-half results confirm the effectiveness of the company's strategy even under challenging market conditions.

The company's operating margin for the six-month period was 5.2%, compared with 6.0% in the first half of 2025, exceeding analysts' expectations of 5.0%. Despite intensifying competition in Europe from Chinese automakers, including BYD and Chery, Renault reaffirmed its 2026 operating margin target of 5.5%, compared with 6.3% in 2025.

The company plans to stand out in the market with new models, including the return of the Twingo city car, this time as a fully electric model, as well as new powertrains such as the first hybrid version of the Sandero, which was Europe's best-selling vehicle in the first half of the year.

As the smallest of Europe's traditional automakers, Renault must maintain profitability to continue investing in electric vehicles and new software to compete in the European market. The company said it remains committed to reducing variable costs per vehicle by about $460 per year.

In other markets, such as Latin America and South Korea, Renault relies on partnerships with other automakers, including China's Geely.

Renault's net profit totaled about $805 million, compared with a net loss of about $12.9 billion in the first half of 2025, which was caused by a one-time write-down of about $10.7 billion related to the company's stake in Nissan.

The company's revenue reached about $34.8 billion, up 9.4% from about $31.8 billion a year earlier, supported by vehicle production at Renault plants for partners Nissan and Mitsubishi, as well as the higher selling price of the new-generation Clio compared with its predecessor.

Renault's new vehicle sales declined 0.4% during the reporting period, mainly because of logistics issues affecting the company's budget brand, Dacia, at the beginning of the year.