Renault boosts presence in Iran with new JV
Renault has signed a new joint venture deal in Iran to boost its presence in the country.
The deal with its Iranian partners IDRO and importer Pargo Negin Naseh Co follows a strategic partnership agreement signed at the Paris Motor Show last September and comes as a growing number of carmakers return to the market following the lifting of sanctions in 2015. Last month saw VW announce it will start selling cars in Iran after a 17-year gap.
Renault’s proposed JV, which will have the carmaker has the majority shareholder, will include an engineering and purchasing centre to support the development of local suppliers as well as a plant with an initial production capacity of 150,000 vehicles a year, supplementing Renault’s existing capacity of 200,000 vehicles a year in the country. The first vehicles to be produced at the plant will be the new Symbol and Duster.
The agreements also provide for the development of an exclusive Renault distribution network, in addition to the existing network of Negin Khodro.
“The development of a commercial network specific to our brand will reinforce Groupe Renault’s position in Iran. The signing of this new joint venture reinforces the strategic choices we have made in Iran and will open new perspectives in a two million vehicle market projected in 2020,” said Stefan Mueller, Renault’s chief performance officer.
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