Renault SA

Battery electric vehicle sales in Europe accounted for more than one in four new car registrations in July. Data from E-Mobility Europe, New Automotive, and Fier Automotive show that BEV registrations across 16 major European markets rose 13.6% year on year to 224,266 units, representing a 25.7% share of all new car registrations. The growth was supported by high fuel prices after the Iran war began in February, government subsidy measures, and the launch of more affordable EV models. France recorded 44,378 BEV registrations, a 35% share of its new car market, while Germany registered 78,609 units and a 29.3% share. France received a significant boost from the Social Leasing programme, a support measure for low-income EV buyers, which helped lift the electric share from 17% in July last year to 35% in July this year. The Nordic and Benelux markets remain the regions with the highest electric vehicle shares in Europe, with Denmark at 80.1%, followed by Finland at 52.6%, the Netherlands at 47.3%, Belgium at 42.8%, and Sweden at 42.6%. In the United Kingdom, more than 50% of Renault's July orders were electric vehicles, up from just 10% two years ago. The Renault 5 became the best-selling EV in Britain in July, and Renault plans to launch the electric Twingo later this year with a starting price below 20,000 pounds. In the first half of this year, EV sales in the European Union rose 40.5% year on year to more than 1.2 million units, accounting for 20.7% of total car sales. However, the European EV market still faces significant constraints, particularly an insufficient number of public charging stations for the many consumers living in apartments who cannot install home chargers. Analysts warn that if infrastructure problems are not addressed, EV sales growth could begin to slow in some areas. The situation in Europe contrasts with the United States, where the EV market is under pressure from the removal of the federal electric vehicle tax credit and a still-limited number of affordable models. Cox Automotive estimates that US EV sales this year could fall 23% from 2025, with a market share of just 6.2%.

Renault Group has reaffirmed its full-year 2026 financial guidance after swinging to a profit in the first half. First-half revenue rose 9.5% to €30.25 billion, with automotive revenue up 9.3% to €26.80 billion. Operating income reached €1.12 billion, compared with a loss of €8.40 billion in the same period of 2025, while net income attributable to the group's share was €705 million, against a loss of €11.18 billion a year earlier. The company maintained its outlook for a group operating margin of around 5.5% and automotive free cash flow of approximately €1 billion, and said cost reduction remains a central focus to offset Middle East crisis impacts.

Renault Group reported stable global sales of 1,165,133 vehicles in the first half of 2026, down 0.4% from a year earlier, while accelerating electrification and improving sales quality. Electrified vehicles accounted for 52.0% of the Group's European passenger car sales, up 8.2 points, with battery electric vehicles reaching an 18.8% mix. Renault brand sales rose 2.6% to 829,518 units worldwide, driven by a 63.2% jump in BEV sales in Europe, where two out of three Renault passenger cars sold were electrified. Dacia brand sales fell 8.1% to 327,077 units, but hybrid vehicle sales surged 30.2%, representing one out of four Dacia sales. Alpine brand achieved a record half-year with 8,538 vehicles sold, up 69.1%, with more than 80% of its sales now electric. The Group maintained a solid European order book of 2.1 months of forward sales and prioritized retail channels, with 60.0% of passenger car sales to retail customers across its five main European markets.

Renault is increasing its vehicle R&D and software development activity in China, tapping into that market's role in electric vehicles and digital mobility. The company has also appointed new senior leadership to oversee legal, compliance, partnerships, and digital transformation across the group. Together, these steps mark a key shift in how Renault organizes technology development, risk oversight, and international collaboration. The decision to lean further into China for R&D and software work reflects the role of that market in electric vehicles and connected car technology. The refreshed leadership structure around legal, compliance, partnerships, and digital projects points to a closer link between product development and risk management.

Renault has won a full ruling in its favor from the High Court of Justice in England & Wales in the London diesel emissions litigation, removing a major legal overhang. The decision comes as Renault's share price has fallen 29.02% year to date and its one-year total shareholder return is down 32.59%, despite a one-day gain of 2.06% to €25.81. With the legal cloud lifted, the stock closed at €25.81 against a narrative fair value of €38.74, suggesting it is 33.4% undervalued according to one popular narrative. That narrative hinges on Renault's brand realignment and product innovation to capture market share in the EV and hybrid market, which is expected to boost revenue and improve net margins. However, the fair value gap relies on higher future margins and stable partnerships, and any setback on profitability targets or joint ventures could quickly challenge that valuation.

Renault Group has won a High Court ruling in the London diesel emissions litigation, with the court rejecting all claims brought against the automaker. The detailed liability judgment followed years of proceedings, thousands of pages of submissions, numerous expert reports and witness statements, and a months-long trial. Renault stated the decision is consistent with its position that its vehicles have always been designed, engineered, and manufactured in compliance with all applicable regulatory requirements. The company also confirmed it will now seek recovery of its legal costs from the large institutional insurers and hedge funds that financed the claims in pursuit of financial gain.

Nissan Motor Co. shareholders voted to reject the reappointment of outside director Motoo Nagai at the company's annual meeting on Tuesday, ending his tenure after key stakeholder Renault SA abstained from supporting him. Chief Executive Officer Ivan Espinosa announced that 11 other directors received the majority needed for appointment or reappointment. Renault, which holds 15% of voting rights, had concerns about Nagai's independence given his long association with Nissan, including his role in the 2018 ouster of former Chairman Carlos Ghosn and his service on the nomination, compensation, and audit committees. New nominee Junichi Shinbo, also a former Mizuho banker, was voted in, though Renault had planned to abstain on his appointment as well. The ouster marks Renault's biggest power move at Nissan since ceding much of its influence in a 2023 alliance rebalancing, while Nissan continues to struggle with a 44% stock decline since the end of 2023 and net losses over the past two fiscal years.

Renault Group has acquired full ownership of Flexis after buying out the stakes of Volvo Group and CMA CGM, gaining complete control of the electric commercial vehicle venture. The company is advancing development of the software-defined Trafic Van E-Tech Electric, with production scheduled at Sandouville from late 2026 and Volvo Trucks handling marketing from 2027. Renault will continue working with Volvo Group to market the new electric Trafic range to professional customers. The move concentrates execution risk on Renault but could capture more value if the van gains traction with fleets facing higher fuel costs.

Rising fuel prices driven by the Iran war are boosting demand for new and used electric vehicles across Europe, with new EV registrations rising 34% year-on-year in May across 17 markets covering more than 90% of EU and EFTA car sales. Fully electric models accounted for almost one in four new registrations in those markets, according to data from New Automotive and E-Mobility Europe. Renault's EV order book has risen by 50% in some countries since the war began in late February, though CEO Francois Provost warned growth will decrease if fuel prices fall. Ford's Europe chief Jim Baumbick said the war has increased customers' interest in EVs but cautioned against seeing it as a lasting shift. Industry experts say improvements in charging infrastructure and a wave of more affordable models, including from Chinese automakers like BYD, are helping make EVs more mainstream, while used EV demand is also strengthening, with online marketplace OLX reporting a more than fourfold year-on-year jump in sales leads for Chinese brands in France.

Volvo Group, Renault Group and CMA-CGM have completed their previously announced agreement to make a strategic change to the business model of Flexis. Renault has bought Volvo's 45 percent ownership and CMA-CGM's 10 percent in Flexis S.A.S. Volvo Group, through Renault Trucks, will remain in the project and will distribute Flexis developed products from 2027. The transaction has no material impact on Volvo Group earnings.

French stocks turned in a mixed performance Wednesday morning with investors looking ahead to the Federal Reserve's monetary policy announcement due later today. The benchmark CAC 40 was up 18.20 points or 0.22% at 8,465.47 at noon. Schneider Electric gained 2%, while Legrand, Saint Gobain and Safran moved up 1.3%, 1.2% and 1.1% respectively. Defense technology company Thales gained about 1% after entering a strategic partnership with Renault Group to develop and industrialize the large-scale production of the TOUTATIS loitering munition. Among the losers, Orange shed about 3.7%, EssilorLuxottica drifted lower by 2.7%, and Stellantis lost 1.6%.

European stocks were subdued on Wednesday as caution gripped markets ahead of the U.S. Federal Reserve's interest-rate decision later in the day. The pan-European STOXX 600 was marginally lower at 635.83 after rising 0.3 percent on Tuesday, while the German DAX dropped half a percent and the U.K.'s FTSE 100 slipped 0.2 percent. France's CAC 40 was marginally higher. Auto shares fell, with Germany's BMW tumbling 6.5 percent after cutting its 2026 outlook, Volkswagen declining 2.2 percent, Mercedes Benz losing 3.3 percent, and Renault dropping 1 percent. Defense technology company Thales rose about 1 percent after entering a strategic partnership with Renault Group to develop and industrialize the large-scale production of the TOUTATIS loitering munition, and Nokia added 1.3 percent after announcing a significant expansion of its advanced test and packaging operations in Allentown, Pennsylvania.