Renault announced on Thursday that it managed to increase revenue and achieve a record level of profitability in 2024, despite facing challenges in the automotive sector, driven by the success of its new lineup of vehicles. However, the company's net profit declined as it scaled back its partnership with Nissan.
The group, which also includes the budget Dacia brand and sportscar Alpine, saw revenues increase by 7.4 percent to reach 56.2 billion euros ($58.6 billion), with its operating profit margin reaching a record 7.6 percent.
The net profit dropped to 800 million euros due to a 1.5 billion euro loss from the sale of Nissan shares.
If Nissan had not sold its shares, profits would have reached 2.8 billion euros, a 21 percent increase from the previous year.
"This outstanding performance is the result of our aggressive product development and cost reduction efforts," chief financial officer Thierry Pieton stated to journalists.
"Renault Group has never been in a stronger position and is supported by such a solid foundation," he added.
The company's chief executive, Luca de Meo, commended the "in-depth transformation of the company".
The board proposed a dividend payment of 2.20 euros per share, representing a 19 percent increase from last year.
Renault's new lineup of vehicles, which was rolled out with 10 models in 2024, made up 24 percent of sales in the last quarter of 2024, a promising start for 2025, according to Pieton.
The company's new compact Renault 5 electric vehicle has received a higher number of pre-orders than anticipated in Europe, where it is currently available.
Pieton stated that the Renault 5, which pays homage to a highly popular model from the 1970s to the 1990s, was attracting clients to dealerships and had a "halo effect" on sales of other models.
Although electric models currently account for only nine percent of Renault's sales in Europe, hybrids remain the top choice among consumers on the continent.
This year's tighter emissions regulations could cost the company approximately one percent of its revenue in 2025, around 550 million euros, as it reduces prices on electric models to meet sales targets.
Renault aims to maintain its operating margin at above seven percent in 2025.
Pieton stated that Renault was not enthusiastic about collaborating with other automakers to meet the emissions requirements, and expressed the hope that these requirements would be eased.