The French automaker has said that its third-quarter revenue was up 6.7%, buoyed by price increases that managed to compensate weaknesses in certain regions.
Renault’s quarter revenue was up on the pricing changes and the automaker managed to offset slower sales in some emerging markets. The company also decided to modify upwards its European auto market target. During the July to September period Renault’s revenue climbed to 8.53 billion euros ($10.9 billion) from 8 billion during the same timeframe of 2013. The company also said in a statement that its sales actually slid – down to 612,934 units for the period.
According to the carmaker, further increases in Europe “offset declines in Renault group’s main emerging markets,” thanks to great sales results from new model introductions – such as the Captur subcompact crossover – the leader of the segment.
The automaker’s low-cost cars, including the very affordable Dacia brand, coupled with its strong presence in emerging markets assisted Renault in overcoming a six-year European auto slump that was finally over in 2013. Now, the financial results of the firm are clouded by weakening currencies and slower demand from some of its overseas regions.
Arndt Ellinghorst, a London-based ISI Group analyst, said in a note to investors that “Renault is indeed on track to reach its full-year targets despite tough Russian and Latin American markets,” as the automaker decided to raise its European auto market forecast to a growth of 5% for the full year – up from 3 to 4% in a previous prediction.