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Investing in Renault

Fortunately for you, we have prepared a very complete article where you will learn the most important facts about Renault, so that you will have the best opportunities when investing in this company. Now, without further ado, let’s get started.

What is Renault?

Renault is a French company with a history of more than a century, a total of 122 years manufacturing vehicles. It has stood out for the creation of passenger cars, sports cars, commercial cars, racing cars and some luxury models. Its success in the world of engines and the support of the French government have made this brand the main figure of the Renault Group.

As a conglomerate specialized in the production of automobiles, it holds shares in other companies such as Alpine, Dacia, Renault Samsung and Lada. On the other hand, it has a backing based on the alliance with Mitsubishi and Nissan. Of this trio of huge companies, Renault holds the majority of shares.

The Renault company has factories around the world, and can be found in Europe, specifically in France, Spain, Slovenia, Romania, Turkey. In America, it has assembly plants in Argentina, Brazil, Chile, Colombia, Mexico. In Asia, Renault is present in India and Russia. It also has a presence in Africa with two plants in Morocco.

Why buy Renault shares?

In the European motor vehicle market, there is enormous pressure around the need to remove from circulation those vehicles that require fuel, giving space to electric cars. If you think that this revolution will be a long time away, nothing could be further from the truth, as this plan is already underway and the full transition is expected to take place in less than 10 years.

For all those who wish to buy shares in car companies, they will be fascinated to know that Renault is precisely the one that is ahead of the curve in this new turn. Thus, investing in Renault has become an incredible business option.

When we analyze Renault’s performance in the face of its competition, we find that its main adversary, the German Volkswagen, has a wide market penetration. Meanwhile, the also French Peugeot and Citröen have tried to make a bid in the French market. In view of this situation, Renault has maintained a constant growth in sales, which has kept the company’s share price up.

Buying Renault shares: Advantages

  • A tradition of more than 100 years. The Renault group is a company with a long and powerful tradition. This gives it a high level of reliability and prestige, which translates into solid backing for its actions.
  • Diversification of sales. Renault has a wide range of product placement areas, which affirms its presence outside France. This enables it to sell its vehicles in several markets at the same time.
  • Excellent dividend ratio. Renault’s dividend payments are usually quite recurrent due to its efficient sales system and a well-structured profit and loss model.
  • Government support. Renault is a company supported by the French State, which has a preferential shareholding.

Buying Renault shares: Disadvantages

  • Potential for financial recession due to the Covid – 19 pandemic. It is no secret that the global economy was shaken by the impact of the Covid – 19 pandemic. The automotive sector was one of the most affected, resulting in a decrease in sales. Specialists predict that the global recovery will be a slow process.
  • Bureaucratization. Although the presence of the French State represents an advantage, it also has a negative facet. This is due to the implications of an escalation in the bureaucratization of internal processes.
  • Reducing the threat of global warming. Renault is making progress in the development of hybrid and electric engines much faster than its competitors. But Europe’s focus is on increasing public transport and reducing the number of private cars.

How to buy Renault shares?

If you have come this far it is because you have already made the smart decision to invest in Renault, but there is probably one detail missing and that is how to buy shares. To participate in the stock market you need a broker, also known as an agent or stockbroker.

Brokers are people or companies specialized in this type of activity that are licensed to operate as stock brokers. It is important that you go to a broker with a good track record, so we recommend that you go to any of the following:

  • Plus500
  • XTB
  • eToro
  • Bankinter Broker

The advantage of these brokers is that they have a worldwide reach, allowing you to access the stock markets whenever you want and from anywhere in the world.

After you have chosen your broker, it is time to register with them. You will be sent a series of documentation that you will have to read and if you agree to accept. Then you will have access to your account, with this you will be able to send from your accounts the money you wish to invest.

Search the price of Renault shares within the platform, so you know how many you can buy. Choose when the order will be placed and from that moment on you will have your Renault shares.

Tips for investing in Renault shares

  • The first thing is to know that you can resort to small capital investments, you do not need large sums to own shares in a company.
  • Always keep yourself informed of stock market conditions, as well as various financial and economic information.
  • Invest only capital that you do not require in the short term.
  • Don’t get carried away by passion or impulse, before investing in the stock market it is wise to carry out a fundamental and a technical analysis of the company.

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