PARIS (Reuters) – French automaker. Renault (EPA:) said Tuesday that its first-quarter revenue rose 1.8%, with strong performance from its financials business offsetting a decline in turnover at core auto sales.
During this period, the group sold 549,099 units and revenue reached 11.7 billion euros (12.47 billion US dollars).
Revenue beat the company’s consensus forecast, which had expected a slight decline from a year earlier, to 11.49 billion euros.
The global auto sector is bracing for a difficult year as demand for electric vehicles slows, adding another challenge for companies already grappling with stiff competition from China.
Sales of Renault, maker of the Clio and Twingo, returned to growth last year after falling for four years in a row, but prices are under pressure due to weak global demand.
Leading electric vehicle maker Tesla (NASDAQ:) is cutting prices in several key markets, putting even more pressure on European companies.
Tesla has cut the price of its Model 3 to $39,990 in Renault’s home market, matching the starting price of the French firm’s new EV Scenic, which has lower levels of battery autonomy.
Renault said its sales volumes rose 2.6% in the quarter, but revenue in its core auto business fell as independent dealers carried out deeper inventory cuts than in the corresponding quarter of the previous year.
Finance income rose 27.9% to €1.25 billion, helped by higher interest rates.
The company confirmed its target operating margin of at least 7.5% for this year.
($1 = 0.9385 euros)