Renault executive says it can't afford price war with Tesla and Chinese peers

News from this site on September 4. According to Reuters, Gilles Le Borgne, the head of engineering at French car company Renault, said at the IAA Munich Motor Show on Sunday that Renault is unable to participate in a deal with Tesla or Tesla. The high cost of price wars between Chinese competitors.

Borgne said, "The best strategy is to maintain current prices and adjust fixed costs."

UBS wrote in a report last week that the Renault brand's performance in the European market Higher exposure also makes it one of the brands most likely to face competition from Tesla and Chinese electric vehicle manufacturers.

In the first half of this year, Renault reported a corporate operating profit margin of 7.6%, the highest ever, and is already close to its 2025 profit margin target. The company said the results were due to rising new vehicle prices and lower production costs.

▲ Picture source Pexels

Renault’s net profit in the first six months of this year was 2.12 billion euros (this Site note: currently approximately RMB 16.769 billion), achieving a turnaround from losses to profits. In the same period last year, Renault suffered a loss of 1.68 billion euros (currently about 13.289 billion yuan), mainly because the company closed its business in the Russian market after the Russia-Ukraine conflict.

Renault CEO Luca de Meo said in a statement: "These results are the result of our continuous efforts to reduce costs over the past three years and our focus on value strategy combined with an unprecedented product offensive. Results."

The previous record for Renault's profit margin was 7% set in the second half of 2017, while Renault's goal is to reach 8% in 2025 and 10% by 2030. Renault also said its performance improvement was also due to rising car prices and pointed to promising sales prospects for its electric vehicles.

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