Renault revenues tumble as rivals heat up competition

Renault’s Mid‑Year Performance: A Survey

Renault faced a tough first half in 2025, grappling with a sluggish European van market, an uneasy partnership with Nissan, and changes in leadership.

Financial Highlights

• Net profit dropped 69 % to 461 million euros after excluding exceptional items.
• Exceptional losses of 11.6 billion euros related to Nissan’s stake, including a 9.3 billion‑euro accounting adjustment announced in July.
• Operating margin fell to 6.0 %, 2.1 points lower than the previous year, but the goal is 6.5 % for the full year.
• Revenue rose 2.5 %, while automotive revenue edged up by only 0.5 % in the first half.

Strategic Context

Renault has long relied on its European market, a sector that hasn’t fully recovered from pandemic‑era sales declines and contracted 1.9 % in the first half of the year. The company’s current focus is on hybrid models and the low‑cost Dacia range.

Leadership Changes

• Luca de Meo left for Kering, a luxury conglomerate that owns Gucci.
• François Provost, a veteran who has been executing the strategic plan, took the CEO role on a Wednesday.

Provost’s Statement

“Our first‑half results were not aligned with our ambitions in a challenging market,” Provost said. He added that actions were already underway to meet the company’s targets and that Renault Group’s profitability remains a benchmark.

Market Dynamics

• Retail sales for private customers dropped.
• Commercial vehicle sales suffered a sharp decline.
• Benchmarking against Asian competitors showed clear targets for improvement.

Formula One Commitment

Provost underscored the expensive commitment to the Alpine F1 team, stating the team aims to achieve success in 2026 with a new car. Speculation about a potential sale of the team surfaced, but no definitive decision has been announced.

International Outlook

• South America and India remain priorities.
• No major alliance project with Chinese partner Geely.
• Analysts at Oddo BHF forecast a quick rebound after this difficult first half.

Competitive Landscape

• Stellantis (Citroën and Peugeot) saw its margin squeezed to 0.7 % in the first half.
• Volkswagen, Europe’s largest carmaker, recorded a margin slide to 4.7 %.
• Renault is less exposed to U.S. tariffs because it does not operate in the United States.

Key Takeaways

1. Renault’s first‑half profit lapsed 69 %, but the company remains profitable relative to rivals.
2. Exceptional losses related to Nissan’s stake cost 11.6 billion euros.
3. Leadership shift to François Provost signals a renewed strategic focus.
4. Retail and commercial vehicle markets in Europe are under stress, compelling a need for strategic adjustments.