Renault continues operation in Iran

The French carmaker, Renault confirmed its plans to continue operating in Iran. Amid uncertainties of recent US sanctions on Iran, few international companies operating in Iran have clearly announced their position.

The two French automakers, PSA and Renault are the major foreign brands in Iran. PSA has nearly 30% of the Iranian car market and Renault another 10%.

Carlos Ghosn, the CEO of Renault has said that, in spite of US sanctions, his company will stay in Iran. At the same time, it will take action to avoid punishment by the US. “We have no intention harming the interests of Renault. We are closely observing the situation in order to ensure that staying in Iran will not provoke the US”, added Mr Ghosn.

The automaker which seeks independent presence in Iran aims to become the largest foreign supplier in this market. To this end, it plans on increasing circulation up to 500 thousand units per year.

Based on what was announced in the early days of the contract between Renault, SAIPA and IDRO two new models are to enter the market by the end of the year.

154 thousand automobiles, the new Duster and the new Symbol, are to enter the market at under one billion IRR ($23.8k).

Plans to domesticize the production state that the Iranian party is initially responsible for 40% of the production. This share will then increase to 60% and 70%, with the 60% milestone set at 1.5 years.

Related Article: Iran’s Automotive Market