Renault does not sell cars in the US, so it will not be directly affected by the 25% levy imposed on vehicles built in Europe, but the various tariffs imposed by the administration of US President Donald Trump have caused uncertainty that could dampen consumer spending globally.

“In a very unstable macroeconomic environment, Renault Group has decided to proactively engage additional cost reduction measures,” chief financial officer Duncan Minto said in a statement as the carmaker released its first quarter sales figures.

“These efforts will enhance our competitiveness,” he added.

Renault maintained its 2025 guidance of a gross operating margin of more than 7%.

The company beat the market with a 2.9% increase in vehicles sold in the first quarter, to 564,980, although revenue dipped 0.3% to €11.7 billion (US$13.3 billion).

Sales in Europe, Renault’s largest market, rose by 2.8% while the number of vehicles sold overall in Europe fell by 1.9% overall, according to data from the ACEA, a trade group for European automakers.

Renault said the share of hybrid vehicles in its first quarter sales in Europe rose by 10.2 percentage points compared to the same period last year to 31%.

Electric vehicles accounted for 13.2% of Renault’s sales in the first quarter, an increase of 5.1 percent points from last year.

Electric vehicles accounted for 15.2% of sales in the first quarter in the EU, according to the ACEA.

Renault continues to benefit from the strength of its budget brand Dacia, with the compact Sandero once again the top selling vehicle in Europe in the first quarter, according to the carmaker.

Renault put its sales strength down to the launch of a number of new models and said that by the end of the year it will have the freshest line-up in Europe.

Renault’s shares rose 1.9% in midday trading in Paris, which was down 0.5%.