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Renault forecasts 2026 margin drop as price pressure dents profit
- On Thursday, Renault Group reported a 15 operating profit drop in 2025 and said it targets around 5.5% margins in 2026.
- After market deterioration in the European van market, Renault cited pricing pressure from Chinese car brands and Stellantis, with over 700 million euros of profit loss, and a 9.3 billion euro writedown on Nissan caused a 10.9 billion euro net loss.
- Renault said overseas markets helped lift sales volumes by 3.2% in 2025 to 2.3 million vehicles, with revenues at 5.4 billion euros, and kept its dividend at 2.20 euros a share.
- Management signalled it will defend share through lower costs, with CFO Duncan Minto told journalists that Renault will continue targeting about 400 euros per vehicle after achieving it in 2025.
- Targeting 5%–7% margins in the medium term, Renault said it expects intense competition from Chinese entrants and Stellantis while aiming to sustain growth in Europe in the coming years.
25 Articles
25 Articles
Analysts see the Group as better positioned than other manufacturers against competition from China. Renault is increasingly relying on partnerships – but that also has a big disadvantage.
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The 2025 closed in braking for the Renault group, which recorded a decrease of 15% of the operating profit but claims at the same time resilience and financial solidity in an increasingly complex competitive context. The group led by CEO Francois Provost has reported an operating profit of 3,6 billion euros, pairs to 6.3% of the turnover, in line with the revised forecasts in July. The revenues have reached 57,9 billion, in increase of 3% (+4.5%…
Renault increases electric car sales, but falling margins burden profit.
The car manufacturer Renault is like most of the European car industry in heavy water. Nevertheless, the French are much more profitable than the Erzrivale Volkswagen.
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