Shares in the French automaker were down 17.3% around 7.30am at €34.12.

Since the start of the year the company’s shares have fallen 25%.

Citing “increasing commercial pressure from its competitors and the anticipation of the continuation of the retail market decline”, the company lowered its operating margin target to around 6.5% of turnover, down from a minimum 7% given previously.

The margin is a measure of operating profit, and despite the squeeze, Renault said it aims to prioritise value creation over volume.

The company announced its sales revenue rose 2.5% in the first half of the year to €27.6 billion (US$32.1 billion), with the operating margin of 6%.

It said June sales volumes were lower than expected and the commercial van segment was also soft.

Yesterday, the company also named its CFO, Duncan Minto its interim CEO as it works to find a successor to Luca de Meo, who stepped down to run luxury group Kering.

Renault reports full first half results on July 31.