Renault Reports Higher 2024 Profits but Predicts Tougher 2025

Renault's 2024 operating profit rose to €4.3 billion, driven by new electric and hybrid models. However, stricter EU CO₂ regulations may impact 2025 performance. Read the full report.

French automaker Renault ended 2024 with results that surpassed analysts' expectations. The company's operating profit reached €4.3 billion, up 3.5% compared to the previous year. Revenue grew by 7.4% to €56.2 billion, driven mainly by the launch of new models, including the electric Renault 5 E-Tech Electric and hybrid vehicles. However, the company remains cautious as 2025 is expected to bring new challenges.

Despite strong growth in key metrics, Renault's net profit fell to €752 million. The decline was attributed to a partial impairment of investments in its Japanese partner Nissan and a reduced contribution from Nissan to the alliance's overall profit. Additionally, stricter CO₂ emissions regulations in the European Union could negatively impact profitability in 2025. Renault anticipates that its operating margin will decrease to 7%, partly due to additional costs associated with meeting new environmental standards.

Nevertheless, Renault is determined to stay competitive. Its primary bet is on the electric Renault 5 E-Tech Electric, which has become a symbol of the brand's transformation. The car combines retro design with modern technology, offering a range of up to 410 kilometers on a single charge. Production has already begun at Renault's plant in Douai, France, with plans to produce up to 300 units per day. With a competitive starting price of €24,900 and advanced features such as bidirectional charging and a heat pump, Renault aims to capture a share of the electric vehicle market, which is expected to grow by 40% in 2025.

At the same time, the industry as a whole faces significant challenges. On one hand, automakers must comply with new EU standards requiring a 15% reduction in emissions compared to 2021 levels. On the other, demand for electric vehicles has slowed, while competition from Chinese manufacturers is intensifying. To navigate these challenges, Renault plans to attract customers with discounts on electric vehicles and higher prices for gasoline models to offset potential profit losses.

Like other automakers, Renault hopes for government support to mitigate the impact of industry changes. However, the company understands that maintaining its market position will require swift and flexible action. In 2025, Renault's main focus will be on strengthening its presence in the electric vehicle segment and improving business efficiency in the face of new environmental regulations.

Source: renaultgroup.com