Renault Posts First-Half Profitability, Pure-EV Sales Surge 48%

Paris — Renault Group released its Q1 and Q2 2026 financial results on July 29, reporting a return to profitability: first-half net profit reached €700 million (approximately $797 million), compared to a net loss of €11.18 billion in the same period last year — driven by a one-time €9.3 billion loss related to Nissan equity. Revenue totaled €30.25 billion, up 9.4% year-on-year, primarily fueled by contract manufacturing partnerships with Nissan and Mitsubishi, as well as higher pricing for the all-new Clio.

The report shows Renault achieved a 5.2% operating margin in the first half — slightly below the 6.0% recorded in H1 2025, yet still above the market consensus of 5.0%. The company reaffirmed its full-year 2026 operating margin target of 5.5% (down from 6.3% in 2025), underscoring the resilience of its strategic model amid intensifying competition. CEO François Provost stated: "Our first-half performance validates the effectiveness of our strategy — even amid multiple challenges."

Pure-electric vehicles emerged as the key growth driver: Renault's pure-EV sales jumped 48% year-on-year in the first half, accounting for one-fifth of its global new-vehicle deliveries. The flagship Renault 5 EV performed strongly, accelerating overall EV business expansion. Meanwhile, traditional ICE and hybrid product lines continue progressing — including the upcoming electric Twingo city car revival and the first hybrid variant of the Sandero, Europe's top-selling model in H1.

As the smallest major European automaker, Renault is supporting its electrification transition through rigorous cost discipline. The company confirmed that its per-vehicle variable costs are decreasing by approximately €400 annually, as planned. However, global new-vehicle sales dipped 0.4% year-on-year, partly due to logistics disruptions early this year at its value-oriented brand Dacia.

Beyond Europe, Renault is strengthening cross-border collaborations to expand production capacity and distribution networks. In Latin America and South Korea, it is advancing localization efforts via its strategic partnership with China-based GEELY Holdings Group. Notably, despite intensified price competition from Chinese automakers BYD and Chery rapidly entering the European market, Renault has not revised down its profitability guidance — opting instead for differentiation and cost optimization to meet the challenge.