Renault To Expand Electric, Hybrid Vehicle Range In Europe Amid Market Challenges

French automaker Renault said Thursday that it would "renew and enlarge" its range of electric and hybrid vehicles in Europe, despite worries that consumers are hesitating to switch away from combustion engines.

The plan for new models came as the company posted a three percent rise in sales last year to 58 billion euros ($68 billion), with EV sales jumping 77 percent and hybrid EVs up 35 percent.

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Overall, EVs now represent 14 percent of total sales by volume, and hybrids 30 percent.

Renault's strategy is a stark contrast to its French rival Stellantis, which stunned investors this month with a massive 22 billion euro write-down of its EV operations, saying it had misjudged buyers' willingness to shift to cleaner vehicles.

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"This success validates our solid product strategy and the power of our brands," chief executive Francois Provost, who took over last summer after previous CEO Luca de Meo was poached by French luxury group Kering, said in a statement.

But Renault makes less money on electric vehicles than those with fossil fuel-powered engines, and Renault's operating margin fell to 6.3 percent last year from 7.6 percent in 2024.

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The pursuit of its "electrification offensive" in Europe will see the margin fall further this year, to 5.5 percent, in a "highly challenging environment", the company said.

At the bottom line, Renault posted a net loss of 10.8 billion euros, reflecting a write-down of the value of its stake in Nissan. Without that charge, net profit would have been down 74 percent, to 715 million euros.

"Cost reduction remains a key priority in 2026 and in the years ahead," the company said.

After opening slightly higher, Renault shares were down 3.4 percent on the Paris stock exchange on Thursday.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)