Shares of the French automaker Groupe Renault (FR:RNO) gained over 3% as of writing after its reported higher sales volume in 2024. The company’s sales increased by 1.3% year-over-year to 2.26 million vehicles in 2024, marking its second consecutive year of growth. Although the growth is slower than the 9% increase in 2023, it still surpassed several larger competitors.
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Earlier this week, Renault’s German rival, Volkswagen (DE:VOW), reported a 2.3% decline in global deliveries for 2024. Volkswagen attributed the decline to weak electric vehicle (EV) sales, cost-cutting struggles, and intense competition in China, its largest market.
Renault Highlights Strong Q4
The company’s sales growth was boosted by a strong fourth quarter, driven by new launches such as the Renault Rafale, Symbioz, Scenic, and R5 electric cars. In Q4, the company’s sales increased by 6.1%, fueled by an increasing share of hybrids and EVs. EVs comprised 16% of the company’s European volumes in Q4 for its Renault brand.
The Q4 growth helped offset the weaker demand earlier in the year. The global auto sector had a tough year, with inflation dampening consumer demand for new vehicles and excess production in China flooding the market. Meanwhile, Renault had also undergone significant restructuring and strategic repositioning in 2024.
Moving ahead, Renault is set to introduce seven new models in 2025 after the launch of 10 new vehicles in 2024.
The company is set to announce its 2024 financial results on February 20.
Is Renault Stock a Buy or Sell?
According to TipRanks’ consensus, RNO stock has received a Strong Buy rating based on seven Buy and two Hold recommendations from analysts. The Renault share price forecast is €53.06, which is 8% higher than the current price level.
