French automaker Renault reported on July 29 that its first-half revenue reached 30.25 billion euros ($34.43 billion), up 9.4% from 27.64 billion euros in the same period last year, driven by contract manufacturing for partners Nissan and Mitsubishi, as well as higher prices for the new Clio model compared to its predecessor. The company posted 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, which was primarily due to a one-time loss of 9.3 billion euros related to Nissan equity.
Renault's first-half operating margin stood at 5.2%, down from 6% 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 of electric vehicles, Renault has withstood competitive pressure from both European rivals and Chinese automakers.
Renault stated that thanks to the strong market performance of the Renault 5 model, the group's pure electric vehicle sales surged 48% compared to the same period in 2025, with EVs 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 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 competitive differentiation through new models, such as relaunching the pure electric version of the Twingo city car and introducing the first hybrid version of its Sandero, which was Europe's best-selling model 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 development while securing its position 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.
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