STORY: Renault shares fell around 6% on Thursday.
Investors sold off after the French automaker forecast lower margins for this year as it takes on strong competition.
It's aiming for around a 5.5% group operating margin in 2026 - down from last year's 6.3%.
Renault had previously warned market conditions were difficult in the second quarter, especially in the European van market it leads.
Although it expects its van business to grow again this year.
Renault said fierce rivalries in passenger cars will continue as more Chinese brands arrive in Europe.
Larger rival Stellantis is also pushing an aggressive sales strategy to regain market share.
Renault CEO Francois Provost said the carmaker was "ready to fight" Chinese competition with lower costs and a fast pace of new model launches.
Renault further reported Thursday a 15% fall in operating profit for last year to $12.8 billion.
That was the auto giant's first loss in five years.
It was largely due to a one-off writedown of $10.9 billion in July on its stake in struggling partner Nissan.
