Renault Sets Up New Joint Venture Company in Iran
Renault has entered into a joint venture agreement with the Iranian government and a private company called Parto Negin Naseh, an importer of Renault cars in Iran.
The new announcement follows on from an initial strategic partnership agreement that was signed at the Paris motor show in September of last year.
The proposed new joint venture company, of which Renault will have a 60% majority stake, 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 the French carmaker’s existing output of 200,000 vehicles a year in the country.
In addition to the vehicle plant announced in September 2016, an engine plant is also planned with a capacity of 150,000 units a year.
The manufacturing facilities will be in Saveh, located 75 miles from Tehran; they will be owned and operated by the joint venture company.
“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 Renault’s chief competitive officer, Thierry Bolloré.
“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”, added Stefan Mueller, the French brand’s chief performance officer.
In the first-half 2017, Renault sales in Iran doubled year on year, for a total 68,365 vehicles and a 9.7 per cent market share.