Renault Group Q3 2024 Revenue Grows 5.0% at Constant Exchange Rates – Full Year 2024 Financial Outlook Reaffirmed

• 2024 Nine-Month Results:
  • Group revenue reached €37.7 billion, a 0.8% increase compared to the same period in 2023, or 3.7% at constant exchange rates^[1]
  • Automotive revenue totaled €33.7 billion, down 1.5% compared to the same period in 2023 but increased by 1.1% at constant exchange rates^[1].
• 2024 Third Quarter Results:
  • Group revenue for Q3 2024 was €10.7 billion, a 1.8% increase compared to Q3 2023, or 5.0% when adjusted for constant exchange rates^[1].
  • Automotive revenue stood at €9.3 billion, down 0.5% from Q3 2023, but increased by 2.6% at constant exchange rates^[1].
  • There has been a continuous improvement in product mix, contributing +3.8 points.
• Strong Automotive Position:
  • The Renault brand holds the #3 position in Europe and is #1 in Light Commercial Vehicles^[2], and is the leading brand in France. The Clio is now the second best-selling car across all channels in Europe.
  • Dacia ranks #9 in Europe for passenger cars and stands on the podium for European passenger car retail sales. The Sandero has achieved the status of the number one best-selling car across all channels in Europe.
  • Alpine has seen significant year-to-date growth in the double digits, setting the stage for an upcoming product launch.
• The order book in Europe remains robust, maintaining about 2 months of forward sales, positioning for a strong Q4.
• Renault Group is effectively managing total inventory, reducing it to 528,000 units as of September 30, 2024 (down 14,000 units year-on-year).
• Renault Group confirms its financial outlook for 2024:
  • Group operating margin expected to be ≥7.5%
  • Free cash flow anticipated to be ≥€2.5 billion

“Our Q3 revenue reflects the advantages of our unique product launch strategy, with 10 new models introduced this year, accounting for 18% of sales during the quarter. This positive trend is expected to continue in the coming quarters as we gradually bring new vehicles to market, and it will accelerate further with 7 additional launches planned for 2025,” stated Thierry Piéton, Chief Financial Officer of Renault Group.

“This competitive and appealing lineup, which includes both electric and hybrid vehicles, showcases our ability to pivot according to the pace of the electric vehicle transition and remains essential for supporting the Group’s performance alongside cost-reduction efforts,” Piéton added.

“Amid this challenging climate, we are ramping up our transformative efforts with dedicated teams, enhancing our agility and laying the foundation for our next chapter,” Piéton concluded.

^[1] To analyze the variations in consolidated revenue at constant exchange rates, Renault Group recalculates current period revenue using average exchange rates from the prior period.
^[2]  Light Commercial Vehicles does not include pick-up trucks.

Third Quarter Revenue Summary

Group revenue for Q3 2024 was €10.7 billion, representing a 1.8% rise compared to Q3 2023. When adjusted for constant exchange rates^[1], the increase was 5.0%.

Automotive revenue amounted to €9.3 billion, reflecting a 0.5% decline when compared to Q3 2023. The decrease included a negative exchange rate impact of -3.1 points (-€289 million), primarily due to the depreciation of the Argentinean peso, Brazilian real, and to some extent the Turkish lira. At constant exchange rates^[1], it increased by 2.6%. Key factors influencing this evolution include:

• An overall stable price effect of +0.2 points, as anticipated, signaling the onset of pricing stabilization. Renault Group is focused on counteracting negative currency effects through pricing strategies while also passing some cost savings to consumers mainly through enhanced features, maintaining vehicle competitiveness while safeguarding margins.
• A positive product mix effect of +3.8 points, attributed to the early benefits of new models’ rollout across Renault (Scenic E-Tech electric, Symbioz, Rafale) and Dacia (Duster) brands. This gradual improvement relative to earlier quarters is expected to continue with the Group’s dynamic launch strategy.
• A slightly negative geographic mix effect of -1.2 points, linked to the ramp-up of Kardian in Brazil and impacted by reduced registrations in France and Germany during the quarter.
• A negative volume effect of -3.1 points including a 5.6% decrease in registrations, partially mitigated by lower destocking of independent dealers compared to Q3 2023 (destocking of 93k units in 2023 Q3 and 72k units in 2024 Q3). Although still significant, this destocking aligned with typical seasonal patterns for the third quarter.
• A negative effect from sales to partners of -2.1 points, indicating a transitional year before launching new vehicles for Renault Group’s partners, starting with the New Nissan B-segment electric vehicle in 2025.
• A positive other effect of +5.0 points, primarily attributed to the strong performance of Retail Renault Group (RRG) operations and parts and accessories sales.

Mobility Services contributed €14 million to the Group’s Q3 2024 revenue, up from €11 million in Q3 2023.

Mobilize Financial Services reported revenue of €1,340 million for Q3 2024, a 21.6% increase from Q3 2023, resulting from higher interest rates alongside an 8.5% growth in average performing assets, which totaled €56.5 billion.

As of September 30, 2024, total inventories (including those held by independent dealers) stood at 528,000 vehicles (a decrease of 14,000 units year-on-year):

• Group inventories were at 231,000 vehicles
• Independent dealer inventories were at 297,000 vehicles

The inventory level at the end of September aligns with seasonal trends and supports the ramp-up of new product launches by the Group. Furthermore, the Group benefits from a strong order book reflecting approximately 2 months of forward sales at the end of September.

2024 Financial Outlook

Renault Group confirms its financial outlook for FY 2024:

• Group operating margin expected to be at least 7.5%
• Free cash flow anticipated to reach at least €2.5 billion

Commercial Performance Highlights

During the first nine months of 2024, the Group’s overall sales remained steady compared to the same period in 2023, totalizing 1,637,225 vehicles sold (-0.4%). In Europe^[2], the Group sold 1,175,762 vehicles, a 3.1% increase, outpacing the market growth which was at 1.8%. Each of the Group’s brands contributed to this growth (Renault brand +3.5%, Dacia +2.2%, and Alpine +17.5%), surpassing market performance.

In Q3 2024, the Group’s total global sales accounted for 482,468 vehicles, marking a decline of 5.6%. In Europe^[2], amidst a market downturn of -6.1%, orders recorded 328,111 vehicles (-5.3%), solidifying the Group’s 3^rd position with a 9.8% share. Renault Group outperformed the market in Italy (+16.6%), Spain (+11.9%), and the United Kingdom (+11.4%), which partially balanced lower performance in France and Germany. Outside Europe, sales totaled 150,217 vehicles, down 5.8%.

The Renault brand continued its growth trajectory in the first nine months of 2024, achieving global sales of 1,126,560 vehicles. Its performance in major markets included:

• In Europe^[2], the brand ranked 3^rd, selling 740,314 units, an increase of 3.5%, which translates to a 6.6% market share. Notably, sales increased in Italy (+16.2%), Spain (+10.6%), the United Kingdom (+24.3%), and France (+1.1%), solidifying Renault’s market leadership. The Clio’s sales in Europe rose by 5.6%, elevating it to the 2^nd best-selling model across all channels. Additionally, Renault maintained its lead in the European LCV market, excluding pickups, with a 9.9% increase in sales.
• In markets outside of Europe, the Renault brand’s sales grew by 6.0% in Brazil, capitalizing on the successful debut of Renault Kardian, while Türkiye saw a growth of 3.9% with the launch of the new Renault Duster.

In Q3 2024, Renault brand sales totaled 339,307 units, a decrease of 4.9%. However, the upcoming Q4 will see momentum from numerous launches targeting both European and international markets.

Dacia reported a total of 500,957 vehicles sold globally in the first nine months of 2024, reflecting a 1.5% increase compared to the prior year. In Europe^[2], Dacia sold 432,332 vehicles (+2.2%), advancing 2 places to rank 9^th in the passenger car market and solidifying its position on the retail sales podium. The brand achieved remarkable performances in Italy (+15.0%) and Spain (+14.6%), while retaining a robust 3^rd position in the French passenger car market during its model renewal process, marked by the launch of the All-New Duster and New Spring. The Dacia Sandero, which saw a 16.3% rise in sales over the first nine months of 2024, is the best-selling model across all channels in Europe.

In Q3 2024, Dacia’s performance decreased by -3.8% with 142,431 vehicles sold, attributed to the transition between Spring and Duster generations. High order levels for the All-New Duster indicate a promising outlook for the coming months.

Alpine sold a total of 3,333 A110 models in the first nine months of 2024, marking a 16.5% increase compared to the previous year. The high-specification models represented over 80% of sales. The brand experienced solid growth in pivotal markets, including +21.5% in France, +19.5% in Germany, and +17.6% in the United Kingdom.

Alpine has also started off strongly concerning orders for its new A290 model, set to hit showrooms in France in Q4. The brand plans to open three new stores, increasing the total number of Alpine Stores worldwide to 160.

A value-focused commercial strategy continues to yield results. In Q3 2024:

• Retail sales comprised 67.8% of the total vehicles sold in the Group’s five primary European markets (significantly above the market average by over 23 points), showing an increase compared to the first two quarters of 2024. The Group secured four vehicles in the top 10 retail sales rankings in Europe—Sandero, Duster, Clio, and Captur. In Europe, the Renault brand sold over half of its vehicles to retail customers, while Dacia achieved an impressive 85% retail sales share.
• In the C-segment and above, the Renault brand saw significant growth, accounting for 42.4% of total brand sales (up 1.6 points), driven particularly by strong performances from Austral and Espace E-Tech Full Hybrid, which were popular among high-end models, with further benefits expected from the Scenic E-Tech electric, Symbioz, and Rafale launches.

Electrified vehicles made up 30.2% of the Renault Group’s passenger car sales in Europe (an increase of 3.4 points compared to 2023). This performance was driven mainly by a substantial rise in hybrid sales, which surged by +52.4% compared to the previous year.

Renault brand’s electrified vehicles  constituted 46.8% of its PC sales in Europe (up 7.8 points compared to 2023), achieving continued growth in this market with a market share of 7.4%, representing a 1.0 point rise. The Renault brand held the 2^nd position in the hybrid vehicle market in Europe.

Battery electric vehicles accounted for 7.6% of the Renault Group’s passenger car sales in Europe (11.6% for the Renault brand’s PC sales). This figure was anticipated to decrease in a transitional year characterized by the discontinuation of the Zoe and Twingo electric models, as well as the generational change of the Dacia Spring. The Renault Group is set to launch a comprehensive lineup of electric vehicles, highlighted by the Scenic E-Tech electric, Renault 5 E-Tech electric, Alpine A290, New Dacia Spring, Renault 4 E-Tech electric, and Alpine A390, supporting Renault Group’s penetration of the EV market.

Sales in Q4 2024 are expected to be strengthened by the gradual launch of seven new vehicles across Europe: Renault 5 E-Tech electric, New Renault Captur, Renault Symbioz, New Renault Master (recipient of the International Van of the Year 2025 award), New Dacia Spring, All-New Dacia Duster, and Alpine A290. Moreover, outside of Europe, the Renault brand is set to benefit from a full quarter of Kardian sales in Latin America and the New Renault Duster in Türkiye, alongside the Grand Koleos in South Korea, which has made a strong start in that market.

Renault Group’s Consolidated Revenue

Top 15 Markets for Renault Group as of Late September 2024

^[1] Revenue analysis at constant exchange rates is performed by Renault Group by recalculating current period revenue using the average exchange rates from the previous period.
^[2]  Scope: ACEA Europe.

SOURCE: Renault Group