Renault Sees Flat Second-Quarter Sales as Van Demand Declines
Renault just reported its second-quarter sales and the numbers are flat. Sounds boring? Not really. When we look deeper, there’s a story worth telling.
Van sales dropped a lot this time, pulling the total figures down. That’s surprising because Renault has been strong in the light commercial vehicle market. But now, tough competition and weaker demand are changing things. Meanwhile, electric cars and small passenger vehicles are picking up speed. Renault’s EV sales are rising fast, even as other parts of the business slow down.
So, what’s happening behind the scenes? Why are vans falling, while EVs are climbing? And what does this mean for Renault’s future?
Let’s break down Renault’s Q2 performance: what worked, what didn’t, and what’s next.
Macro Sales Overview
Renault’s Q2 sales held steady with a 0.1% drop in units essentially flat compared to Q1’s 2.8% growth. In the first half of 2025, total volumes edged higher by around 1.3%, roughly 1.17 million vehicles, with strength in Europe offsetting weakness in light commercial vans.
What Sank Van Demand?
The key culprit was a 29% decline in van and light commercial vehicle (LCV) sales across Europe. Renault’s global sales director, Ivan Segal, noted intense competition and a hesitant economy as driving businesses to delay van purchases. These pressures hit exactly when Renault was updating its model lineup and facing tough comparisons with last year.
Passenger Car & EV Performance
It wasn’t all gloom. Passenger-car volumes jumped 8.4% in H1, largely thanks to continued demand for models like the Clio. In fact, Renault’s electric-vehicle sales soared 57%, far outpacing the 25% market growth in Europe driven by the popular R5 across France, Germany, and Spain. Meanwhile, Alpine saw its A290 sports EV registration numbers rise by 85%.
Leadership & Financial Outlook
Renault appointed CFO Duncan Minto as interim CEO after Luca de Meo left the company marking a leadership shift during a tough sales phase. The company also cut its 2025 operating-margin target from ≥7% to about 6.5%, and slashed free cash-flow guidance from over €2 billion to €1-1.5 billion. A negative €900 million impact on working capital delayed billings and slow sales crushed free cash flow, which came in at just €47 million in H1.
Market Reaction
Investors reacted fast. Renault shares plummeted nearly 18%, marking their worst day since the pandemic in March 2020.
Analysts criticized the timing of the profit warning, calling it poorly timed just weeks after the CEO change. The mood echoed through key stock indexes, with Stellantis and Volkswagen also facing pressure.
Strategic Shifts & Diversification
To tackle these issues, Renault will ramp up cost-cutting across R&D, manufacturing, administration, and sales channels in H2. Management believes the LCV market share can recover later this year. Renault is also leaning on expansion in markets like Latin America, Turkey, Morocco, and Korea areas that showed a 16.3% increase in H1 outside Europe.
Competition and Economic Outlook
Renault’s European focus sidestepped U.S. tariff risks but that also leaves it vulnerable to economic slowdowns on the continent. Chinese automakers are making inroads into Europe, especially in the EV and hybrid segments, adding more pressure. At the same time, global EV sales are climbing. Europe’s EV shipments jumped 35% in April alone but competition is growing too.
Outlook for H2 & Beyond
Renault expects H2 growth to mirror the first half, aiming to recapture van market share. The model pipeline is strong. Upcoming releases include a €25k version of the Renault 5 E-Tech and the commercial rollout of the Renault 4 E-Tech. Hybrid updates with new 160 HP E-Tech engines for the Captur and Symbioz are planned, plus expansions into new markets with models like the Boreal, new Koleos, and Kardian.
Bottom Line
We see a mixed bag. The van market downturn hit hard, but Renault has strong momentum in cars and EVs. Whether cost controls, leadership transition, and new products can turn the tide will define the rest of 2025. The next earnings call on July 31 will be key; it should reveal if Renault’s strategy is sticking.
Frequently Asked Questions (FAQs)
Renault left the U.S. market in the 1980s due to low sales and strong competition. It now focuses on Europe, Latin America, and other global markets.
Renault expects steady growth in 2025. It plans to launch new electric and hybrid cars and recover sales in vans and global markets like Turkey and Latin America.
Renault’s profit dropped in 2025. Rising costs and weak van sales hurt earnings. It now expects a lower profit margin of around 6.5% for the full year.
In the first half of 2025, Renault earned about €26.8 billion in revenue. This was slightly higher than last year, with growth mostly from cars and electric vehicles.
Disclaimer:
This content is for informational purposes only and not financial advice. Always conduct your research.