Renault Group (RENA.PA) 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 this week.

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 per cent in some markets, ​such as France and Germany, since the war started, Provost said ​last month.