Renault Swings Back to Profit as EV Push Withstands Chinese Onslaught

Renault returned to profit in the first half of 2026, powered by a surge in electric vehicle sales, in a set of numbers that offered a rare note of resilience from a European mass-market carmaker under sustained pressure from Chinese rivals.

The French group reported first-half revenue of €30.25 billion on Wednesday, up 9.4 per cent year on year, and swung to a net profit of €700 million from a loss of more than €11 billion in the same period of 2025, when a one-off charge tied to its stake in Nissan dominated the accounts. The operating margin came in at 5.2 per cent. The result fell just short of analyst expectations for around €770 million of net profit, but the underlying operating trend was solid in a weak market.

Electrification did the heavy lifting. Sales of fully electric cars jumped 47.6 per cent on the year, helped by the new Renault 5, with EVs accounting for one in five vehicles sold. Chief executive François Provost said the first-half figures confirmed the group's strategic model works even in a complex environment.

Renault held its full-year targets, guiding to an operating margin of about 5.5 per cent, down from 6.3 per cent in 2025, and automotive free cash flow of roughly €1 billion. As the smallest of Europe's traditional manufacturers, it is leaning on tight cost control, targeting a €400 reduction in variable cost per vehicle each year, to protect the margins that fund its EV and software investment. Rising raw material costs remain a headwind, with about €400 million of a €600 million full-year hit landing in the second half.

A pipeline of launches, including an electric Twingo, a hybrid Sandero and the Mégane E-Tech, is meant to carry momentum into the second half.