LONDON, July 30 — French carmaker Renault said on Friday it expected to post a full-year 2021 profit despite a worsening semiconductor chip shortage and rising raw materials costs.

Renault said it now expects the chip shortage to lead to a production loss over the course of 2021 of 200,000 units, up from its previous forecast of a loss of 100,000 units.

The carmaker posted a half-year net profit versus a hefty loss for the same period in 2020 due to rising car sales and a turnaround plan focused on profitability.

Renault reported an operating margin of 2.8 per cent for the first half of the year and said it is aiming for a full-year margin "of the same order."

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These results "mark only the first step in our turnaround, which should accelerate with arrival of the new vehicles in preparation," Chief Executive Luca de Meo said in a statement.

Last month, Renault unveiled a more ambitious strategy for electric vehicles (EVs), betting on new, affordable versions of its iconic small cars of the past to catch up with Volkswagen in the fast-growing sector.

After posting a drop in car sales for five consecutive quarters, Renault's sales for the first half of 2021 rose 18.7 per cent.

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The French carmaker posted a quarterly net profit of €354 million (RM1.78 billion) for the first six months of 2021, versus a hefty loss of nearly €7.3 billion for the same period in 2020, which included lengthy industry-wide production shutdowns to slow the spread of the global coronavirus pandemic. — Reuters