Renault beats revenue estimates as electric-car sales surge

Renault said orders were 60% higher at the end of last month and inventories were down by about a fifth compared with last year.
By : Bloomberg
| Updated on: 23 Oct 2020, 12:02 PM
An employee places the electric charger into a new Renault Zoe automobile, manufactured by Renault SA. (Bloomberg)
An employee places the electric charger into a new Renault Zoe automobile, manufactured by Renault SA. (Bloomberg)
An employee places the electric charger into a new Renault Zoe automobile, manufactured by Renault SA. (Bloomberg)
An employee places the electric charger into a new Renault Zoe automobile, manufactured by Renault SA.

Renault SA reported third-quarter revenue that beat estimates, partly fueled by a surge in sales of its popular electric model that the carmaker said will allow it to meet European emissions rules.

Although revenue fell 8.2% to 10.37 billion euros ($12.2 billion) in a period still marked by the pandemic, it surpassed the 9.96 billion-euro average of estimates compiled by Bloomberg. The French manufacturer sold fewer passenger cars and trucks in the quarter, but sales of the battery-powered Zoe more than doubled, Renault said Friday.

Similar Cars

Find More Cars
Hyundai Kona Electric (HT Auto photo)
Hyundai Kona Electric
cc | Electric | Automatic
₹23.79 - 23.98 Lakhs**Ex-showroom price
Renault Kwid (HT Auto photo)
Renault Kwid
799 cc | Petrol | Manual | 25 kmpl
₹4.07 - 5.51 Lakhs**Ex-showroom price
Renault Triber (HT Auto photo)
Renault Triber
999 cc | Petrol | Manual | 19 kmpl
₹5.12 - 7.98 Lakhs**Ex-showroom price
Renault Kiger (HT Auto photo)
Renault Kiger
999 cc | Petrol | Manual
₹5.45 - 10.09 Lakhs**Ex-showroom price
Renault City K-ze (HT Auto photo)
UPCOMING
Renault City K-ze
Electric | Automatic
₹6 - 10 Lakhs* *Expected Price
Renault Duster (HT Auto photo)
Renault Duster
1498 cc | Petrol | Manual | 14.19 kmpl
₹9.39 - 14.28 Lakhs**Ex-showroom price

The global health crisis has added to pressure on the carmaker, which was already suffering from overcapacity in its factories and problems at alliance partner Nissan Motor Co. Renault drew down 3 billion euros from a state-backed loan provided by France, but sought to reassure investors by predicting positive operational free cash flow for its automotive activities in the second half.

FOLLOW US:Stay Updated with latest content - Subscribe us on
FOLLOW US:Stay Updated with latest content - Subscribe us on

“This third quarter highlights the change in our commercial policy, which now focuses on profitability rather than volumes," Chief Executive Officer Luca de Meo said in the statement.

(Also read | Renault sold three lakh electric vehicles in Europe in 10 years)

Orders Increase

Renault Zoe electric car continues to lead the electric vehicle segment in Germany.
Renault Zoe electric car continues to lead the electric vehicle segment in Germany.
Renault Zoe electric car continues to lead the electric vehicle segment in Germany.
Renault Zoe electric car continues to lead the electric vehicle segment in Germany.

The sales beat is in line with better-than-expected results from BMW AG, Daimler AG and Volvo Group, and the rise in overall European car registrations in September for the first time this year.

Orders were 60% higher at the end of last month and inventories were down by about a fifth compared with last year, Renault said. It held 15.2 billion euros in liquidity reserves at the end of September, including the 5 billion-euro government-backed credit line.

While Renault doesn’t report earnings on a quarterly basis, it posted a record first-half loss due mostly to impairments and restructuring costs at Nissan. The partners in the alliance, which also includes Mitsubishi Motors Corp., have embarked on plans to cut costs and jobs in a bid to turn around their flagging operations.

(Also read | Renault's made-in-China electric SUV stirs labor unrest at home)

De Meo has promised to unveil a strategic plan in January and overhaul the company’s model portfolio. He has provided some clues in recent months with an expansion in the line-up of electric vehicles and a new focus on the Alpine, Dacia and Renault brands.

The Franco-Japanese car-making alliance has been trying to overcome damage wrought by the November 2018 arrest of Carlos Ghosn, who was chairman of all three companies. The partnership was meant to create a global powerhouse to compete against Volkswagen AG and Toyota Motor Corp., but its aggressive strategy that fixated on volume growth proved misguided when auto sales began to decline.

Renault has announced a plan to eliminate about 14,600 jobs worldwide and to lower production capacity by almost a fifth in a bid to cut costs by more than 2 billion euros.

First Published Date: 23 Oct 2020, 12:02 PM IST
Recommended For You
View All
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking VIEW OFFERS you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city