Renault hit by Chinese rivalry, profit slides

Renault reported a 15% decline in operating profit for 2025 and warned that margins could come under further pressure this year as competition intensifies in its core European market.

The French automaker posted operating profit of €3.6 billion ($4.24 billion), broadly in line with analyst expectations, with an operating margin of 6.3%. The company pointed to pricing pressure from fast-growing Chinese carmakers and established rivals as key factors weighing on profitability, News.Az reports, citing Reuters.

Despite the profit decline, Renault’s full-year revenue rose 3% to €57.9 billion, supported by new vehicle launches and stronger overseas sales volumes.

However, the group reported a net loss of €10.9 billion, its first annual loss in five years, largely driven by a one-off €9.3 billion writedown related to its stake in alliance partner Nissan, which has been facing ongoing challenges.

Looking ahead, Renault signaled caution for 2026, indicating that competitive dynamics in Europe could continue to squeeze margins.

The company said it plans to maintain its shareholder return, proposing a dividend of €2.20 per share, unchanged from the previous year.

News.Az 

By Aysel Mammadzada