Renault has posted Group operating profit rising 41% to EUR1.54bn (US$1.71bn), with net income increasing from EUR1.45bn to EUR1.56bn.

Group revenues were up 13.5% to EUR25.2bn, while registrations increased 13.4% to 1.57m units.

“The first half results demonstrate the relevance of our strategy,” said Renault chairman and CEO, Carlos Ghosn.

“Success of our new models, our regional diversification and all employees’ engagement have allowed the group to set a new record for its first half operating margin and to have confidence in the outlook for the full year.

Renault confirmed its intention to take part in a recapitalisation programme for AvtoVAZ before the end of the year, which should result in the consolidation of the Russian automaker as of 31 December.

In 2016, Renault estimates the global market is expected to record growth around 1.7% per cent compared to last year. The European market, as well as the French one, are now expected to increase by at least 5%.

Outside Europe, the Brazilian and Russian markets are forecast to decline: -15 % to -20% for Brazil and -12% for Russia.

“On the contrary, China (+4% to +5%) and India (+7% to +9%) should pursue their positive momentum,” added a Renault statement.