Renault says sales down in Q3 2020, but beat forecasts

French auto giant Renault said on Friday, October 23, that its sales were down in the 3rd quarter, but the figure was cushioned by a boost for its electric models and as the global car market shows the first signs of recovery.

Renault, which does not publish profits on a quarterly basis, said in a statement that revenues fell by 8.2% to 10.4 billion euros ($12.3 billion) in the 3 months to September and unit sales were down by 6.1% at 806,320 vehicles.

Average analyst forecasts compiled by Bloomberg had anticipated 3rd quarter revenue of just under 10 billion euros.

“The 3rd quarter of 2020 is marked by a recovery in the trend of the global automobile market,” Renault said.

The strong euro was also a factor in the decline in sales as that makes the group’s products more expensive to export.

“At constant exchange rates, the decrease would have been 3.2%,” the carmaker said.

Renault said that “September showed a positive momentum, particularly marked in Europe, where group sales were up 8% in a market up 3%.” 

Sales of its battery-powered Zoe model, in particular, more than doubled, soaring by 150%. 

“This 3rd quarter highlights the change in our commercial policy, which now focuses on profitability rather than volumes,” said chief executive Luca de Meo.

The group’s electric and hybrid models “have been very well received, our liquidity reserves and our positive spirit give us confidence in the group’s ability to start its recovery,” de Meo said. – Rappler.com