Renault making higher profits on compact electric models than Megane, says CEO

PARIS, July 6 (Reuters) - ‌Renault Group ​is ​achieving better margins on its compact electric R5 than larger models like the Megane ‌or Scenic, CEO Francois Provost told French business ⁠daily Les Echos on Monday.

• European carmakers have frequently said ‌cumbersome regulations in Europe ‌and an immature battery supply chain make it hard to turn a profit on electric vehicles, ​particularly with fierce competition from Chinese counterparts.

• Larger, so-called C segment vehicles are typically more profitable ⁠than smaller models like the R5 small sedan or Twingo city ​car as they command higher prices.

• However Provost said that trend has been challenged since ​the launch of the company's ‌newer EVs.

• "We are making positive margins on the R5, R4, and Twingo — margins ⁠that are higher than those of the Megane or Scenic, even though the latter belong to a higher ⁠segment," he told Les Echos.

• Since Renault launched the R5 ​in late 2024 it has become one of Europe's best-selling EVs, with rising fuel prices due to the Iran war ‌helping to boost demand for new and used electric vehicles across Europe.

• The ‌group's EV order book is up by 50% in ⁠some markets, such ‌as France and Germany, ​since the war started, Provost said last month.

(Reporting by Dominique Patton; Editing by Jan ‌Harvey)

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