Renault sales disappoint, causing share price drop.

Home > Industry Analysis > Content

【Summary】Renault's shares dropped over 7% after the company's third-quarter sales growth of 7.6% disappointed investors. The company's strategy of selling fewer cars at higher prices contributed to the increase in sales revenue. Renault confirmed its outlook for 2023, but investors were not satisfied, expecting sales growth of 10.77%.

FutureCar Staff Oct 19, 2023 11:19 PM PT

Renault sales disappoint, causing share price drop.

Renault, the French auto giant, experienced a decline in its shares after disappointing third-quarter sales. Despite a 7.6% increase in sales, reaching EUR10.5 billion (USD11 billion), investors were not satisfied. The growth was attributed to higher prices for Renault's vehicle line-up, as the company adopted a strategy of selling fewer cars at higher prices.

Renault remains optimistic about its future, confirming its outlook for 2023. The company expects cash flow to be equal to or above EUR2.5 billion and an operating margin between seven and eight percent. Chief Financial Officer Thierry Pieton expressed confidence in the improvement of profitability in the second half of the year and beyond.

However, the market response was not favorable, with Renault's shares falling over seven percent in morning trading on the Paris stock exchange. Analysts surveyed by Bloomberg had anticipated a sales growth of 10.77 percent, further disappointing investors.