Renault Declares Plan to Double Production in Iran

With the partial easing of economic sanctions, the Iranian automotive market is appearing increasingly attractive to all leading automotive manufacturers. French automaker, Renault had a longstanding association with the country and according to Peyman Kargar, vice president of Renault’s Africa, Middle East and India region, and CEO of Renault Pars, the company is aiming to double production in order to increase its market share to 20 per cent.

In 2012, prior to the imposition of sanctions, Renault had a 10 per cent share of the Iranian car market. Though production of Renault cars dropped in Iran dropped in the wake of the sanctions which were imposed in 2012, unlike its French competitor PSA-Peugeot, Renault never completely withdrew from the Iranian market. The sanctions severely limited the offering of some services. Nevertheless, Renault maintained manufacture and sales of its models and even introduced two new models, the pickup L90 and the Renault Sandero.

Currently, Renault has joint ventures with two Iranian companies, Saipa and Iran Khodro. In 2015, when Renault officially returned to the Iranian market, the company sold 51,500 vehicles, which accounted for a market share of 4.8 per cent share of the market. In order to reach its mid-term plan target of 20 per cent share of the market, Renault will need to double production in association with its joint venture partners.

Renault currently sells three models in Iran and will explore production of new models in association with its two partners, Saipa and Iran Khodro.