diff --git a/homeassistant/components/renault/__init__.py b/homeassistant/components/renault/__init__.py
index b02938b1652..f69451290bc 100644
--- a/homeassistant/components/renault/__init__.py
+++ b/homeassistant/components/renault/__init__.py
@@ -26,7 +26,10 @@ async def async_setup_entry(hass: HomeAssistant, config_entry: ConfigEntry) -> b
         raise ConfigEntryAuthFailed()
 
     hass.data.setdefault(DOMAIN, {})
-    await renault_hub.async_initialise(config_entry)
+    try:
+        await renault_hub.async_initialise(config_entry)
+    except aiohttp.ClientResponseError as exc:
+        raise ConfigEntryNotReady() from exc
 
     hass.data[DOMAIN][config_entry.entry_id] = renault_hub
 
diff --git a/tests/components/renault/test_init.py b/tests/components/renault/test_init.py
index 7f2aee9d7bd..415b07dc7e6 100644
--- a/tests/components/renault/test_init.py
+++ b/tests/components/renault/test_init.py
@@ -1,7 +1,7 @@
 """Tests for Renault setup process."""
 from collections.abc import Generator
 from typing import Any
-from unittest.mock import patch
+from unittest.mock import Mock, patch
 
 import aiohttp
 import pytest
@@ -76,3 +76,22 @@ async def test_setup_entry_exception(
     assert len(hass.config_entries.async_entries(DOMAIN)) == 1
     assert config_entry.state is ConfigEntryState.SETUP_RETRY
     assert not hass.data.get(DOMAIN)
+
+
+@pytest.mark.usefixtures("patch_renault_account")
+async def test_setup_entry_kamereon_exception(
+    hass: HomeAssistant, config_entry: ConfigEntry
+) -> None:
+    """Test ConfigEntryNotReady when API raises an exception during entry setup."""
+    # In this case we are testing the condition where renault_hub fails to retrieve
+    # list of vehicles (see Gateway Time-out on #97324).
+    with patch(
+        "renault_api.renault_client.RenaultClient.get_api_account",
+        side_effect=aiohttp.ClientResponseError(Mock(), (), status=504),
+    ):
+        await hass.config_entries.async_setup(config_entry.entry_id)
+        await hass.async_block_till_done()
+
+    assert len(hass.config_entries.async_entries(DOMAIN)) == 1
+    assert config_entry.state is ConfigEntryState.SETUP_RETRY
+    assert not hass.data.get(DOMAIN)