Renault to cut costs as US tariffs lash car market

French carmaker Renault said on Thursday (Apr 24) it will seek to further cut costs as US tariffs shake up the global car market.

Renault does not sell cars in the United States, so it will not be directly affected by the 25 per cent levy imposed on vehicles built in Europe, but the various tariffs imposed by the administration of US President Donald Trump have caused uncertainty that could dampen consumer spending globally.

“In a very unstable macroeconomic environment, Renault Group has decided to proactively engage additional cost reduction measures,” chief financial officer Duncan Minto said in a statement as the carmaker released its first quarter sales figures.

“These efforts will enhance our competitiveness,” he added.

Renault maintained its 2025 guidance of a gross operating margin of more than seven per cent.

The company beat the market with a 2.9 per cent increase in vehicles sold in the first quarter, to 564,980, although revenue dipped 0.3 per cent to 11.7 billion euros (S$17.4 billion).

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Sales in Europe, Renault’s largest market, rose by 2.8 per cent while the number of vehicles sold overall in Europe fell by 1.9 per cent overall, according to data from the ACEA, a trade group for European automakers.

Renault said the share of hybrid vehicles in its first quarter sales in Europe rose by 10.2 percentage points compared with the same period last year to 31.0 per cent.

Electric vehicles accounted for 13.2 per cent of Renault’s sales in the first quarter, an increase of 5.1 per cent points from last year.

Electric vehicles accounted for 15.2 per cent of sales in the first quarter in the EU, according to the ACEA.

Renault continues to benefit from the strength of its budget brand Dacia, with the compact Sandero once again the top selling vehicle in Europe in the first quarter, according to the carmaker.

Renault put its sales strength down to the launch of a number of new models and said that by the end of the year it will have the freshest line-up in Europe. AFP