Renault logged a 3-percent drop in revenues in the third quarter of 2013 to EUR8 billion ($11.04 billion), partly due to Iran sanctions. Likewise, the drop came as weaker emerging market currencies more than offset gains in pricing and sales volumes. Despite the revenue drop, Renault said that it remains on track to meet its objectives for 2013, reiterating its vow to deliver a global sales surge supported by a positive auto division operating margin and free cash flow.
The carmaker saw its automotive division revenue eaten up by the weaker Brazilian real, Argentinian peso, Indian rupee and Russian ruble against the euro. Renault has been shrinking the pricing gap with Volkswagen as it launches new models like the Captur compact sports utility vehicle and updated Clio subcompact.
Renault saw its global sales volumes surge by 3 percent thanks to strong demand in Russia and Turkey, which helped make up for 23,000 lost vehicle sales to Iran, stopped by international sanctions.
The carmaker’s RCI Banque car loans arm contributed a 0.4-percent increase in quarterly revenue to EUR515 million, with new financing contracts rising by a quarter to 286,300 in the third quarter of 2013.