Renault expands operations in Iran with new JV

Renault has announced the signing of a joint venture agreement with the Industrial Development & Renovation Organisation of Iran (IDRO) and Parto Negin Naseh Co, an importer of Renault products in Iran.

The proposed JV, in which Renault will be the majority shareholder, though with a first period of joint control with IDRO and Parto Negin Naseh Co, 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 Groupe 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 new Duster.

In addition to the vehicle plant announced in September 2016 and locates at Saveh, 120km from Tehran, an engine plant is also planned with a capacity of 150,000 units a year.

“We are happy to sign this agreement with IDRO and Parto Negin Naseh Co. In a rapidly expanding Iranian market, it was vital to implement plants, engineering and purchasing centre. This joint venture will enable an acceleration of our growth in this country" said Thierry Bolloré, Member of Groupe Renault Executive Committee and Chief Competitive Officer.

“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 2 million vehicle market projected in 2020”, said Stefan Mueller, Member of Groupe Renault Executive Committee and Chief Performance Officer.

Renault to continue making four models in Iran
Meanwhile, independent of the new JV, Renault’s JV with partners SAIPA and Iran Khodro will continue to produce and deliver the current range: Tondar, Tondar pick-up, Sandero and Sandero Stepway.

Groupe Renault has been present in Iran since 2003 through a joint venture with SAIPA and IRAN KHODRO. Renault and its Iranian partners have produced 500,000 vehicles to date. In 2016, Groupe Renault sales increased 110.7 per cent year on year, for a total 108,536 vehicles and an 8.4 per cent share of the market. In first-half 2017, group sales in the country increased 100.3 per cent year on year, for a total 68,365 vehicles and a 9.7 per cent share of the market.