E-car strategy as the crux for EU manufacturers

Renault has surprised with its latest figures, showing strong demand for electric vehicles (EVs) led to a 9.4 percent increase in revenue during the first half of the year, with a profit of 700 million euros. The French manufacturer is holding its ground against new competition from China, while German automakers struggle particularly in the Chinese market. Online since today, 17:02. Among other things, Renault managed to convince customers with renewed versions of classic models such as the Twingo, R4, and R5 as pure electric vehicles. According to reports, sales of purely electric cars rose by 47.6 percent in the first half of the year. This means that one in five newly sold vehicles from the company was an EV. Although the total number of cars sold decreased by 0.4 percent due to logistics issues with the budget brand Dacia early this year, the operating margin fell slightly from six percent in the previous year to 5.2 percent, remaining above expectations. For the entire year of 2026, the company confirmed its target margin of 5.5 percent. In the previous period, the Renault-Nissan stake burdened the company with a shortfall of 11.18 billion euros. The global EV market continued to grow strongly, apparently driven by economic upheavals related to the Iran conflict and rising fuel prices. A study of 43 major markets published on Tuesday by consulting firm PwC shows around 6.6 million new registrations of electric vehicles. That represents a nine percent increase compared to the previous year, though growth has slowed down. Renault recorded good sales figures, among others, with the R5 model. The reason for the decline in demand is mainly in China. The world's largest electric vehicle market shrank by five percent in the first half of the year to just under 3.6 million electric vehicles. In the United States, registrations of electric vehicles dropped by 22 percent. Meanwhile, Europe made significant progress in the EV sector: In the EU, including Britain, Iceland, Liechtenstein, Norway, and Switzerland, PwC counted nearly 1.6 million electric vehicles, representing a 33 percent increase compared to the previous year. This corresponds to a market share of 22 percent. Particularly strong growth was observed in France and Italy, but Germany once again became the largest individual market in Europe, surpassing the UK and France. Similarly, data from the European automotive manufacturers' association ACEA show that the share of electric vehicles among new cars increased from 15.6 percent last year to 20.7 percent in the first half of this year. Growth was especially pronounced in June. Experts warn, however, that the EV market in the EU still heavily relies on state subsidies for purchase. Furthermore, Chinese brands are pushing into the market with aggressive pricing strategies. According to ACEA figures, the market shares of Chinese automakers in the first six months were 2.7 percent for Geely (Volvo, Polestar), and 2.2 percent each for SAIC Motor (brand MG) and BYD. However, the market share of Chinese automotive companies rose from six percent in the previous year to ten percent in the current year in June. German manufacturers are struggling with business in China. The growing trend towards electric vehicles, combined with US tariffs and the weak market in China, along with lower profit margins, is placing particular pressure on German manufacturers. According to recent BMW figures from Thursday, business in China is particularly poor, with sales in the world’s largest car market dropping by almost a third in the second quarter. BMW is fighting like other German manufacturers with the business in China. BMW sells almost exclusively combustion engine vehicles in China. Like elsewhere, these are under pressure due to fuel prices and can barely keep up with competition from Chinese suppliers. Meanwhile, the company's electric vehicles, according to their own figures,