French automaker Renault said on Tuesday that first-quarter revenue rose 1.8%, as better performance in its financing business offset a decline in core car sales.
The group sold 549,099 vehicles during the period, with revenues reaching 11.7 billion euros ($12.47 billion).
Revenue beat consensus given by the company, which was expected to be slightly lower than the year-ago period at 11.49 billion euros.
The global auto industry is gearing up for a tough year as demand for electric vehicles slows, creating another challenge for companies already competing fiercely with China.
Sales at Renault, maker of the Clio and Twingo, returned to growth last year after four straight years of decline, but prices are under pressure due to weak global demand.
Leading electric car maker Tesla has cut prices in several key markets, putting further pressure on European companies.
Tesla has cut the price of its Model 3 in Renault’s home market to $39,990, in line with the starting price of the French company’s new EV Scenic, which has a shorter battery range.
Renault said sales rose 2.6% in the quarter, but revenue in its core car business fell as independent dealers stocked more than in the same period last year.
Thanks to the increase in interest rates, revenue from financing activities increased by 27.9% to 1.25 billion euros.
The company has reiterated its operating margin target of at least 7.5% this year.
Tags: financing business helped boost Renaults sales quarter
