Renault sales up 7.6% thanks to higher prices but forex weighs
FRENCH carmaker Renault said on Thursday (Oct 19) its revenues rose by 7.6 per cent in the third quarter thanks to sales of higher-end market models, though currency depreciations in Turkey and Argentina weighed heavily on the pace of growth.
Revenues came in at 10.51 billion euros (S$15.2 billion), a touch above an analyst consensus forecast of 10.46 billion euros distributed by the company.
The depreciation of the Argentinian peso and the Turkish lira had a negative impact in the quarter that almost offset the positive effect of Renault being able to increase prices and rein in promotions, as well as focusing on its premium models.
World sales by volume grew by 6.1 per cent, a slower pace of growth compared to the 13 per cent increase posted in the first half of the year due to a strong reduction in inventories at independent dealers as supply chain and logistics snags eased up.
Sales growth this year comes after four years of consecutive declines for the French group, which is in the middle of a major revamp that includes the spinoff of its electric vehicle (EV) business Ampere, set to be listed on the market as a separate entity next year.
Like other European carmakers it is facing strong competition in the EV market from Tesla and cheaper Chinese models.
Renault confirmed its targets for 2023, adding it now expected a group operating margin closer to 8 per cent for the year from a previous 7 per cent to 8 per cent forecast. REUTERS
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