Groupe Renault, Boulogne-Billancourt, France, has announced the signing of a joint venture agreement with the Industrial Development & Renovation Organisation of Iran (IDRO) and Parto Negin Naseh Co, an Iranian importer of Renault products.
The proposed joint venture company, of which Renault will be the majority shareholder, will include an Iran-based plant with an initial production capacity of 150,000 vehicles a year, supplementing Renault’s existing capacity of 200,000 vehicles in Iran, and an engineering and purchasing centre to support the development of local suppliers.
“We are happy to sign this agreement with IDRO and Parto Negin Naseh Co,” stated Thierry Bollore, a Member of Groupe Renault’s Executive Committee and Chief Competitive Officer. “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.”
Stefan Mueller, fellow member of the Executive Committee and Chief Performance Officer, added, “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.”
Groupe Renault has maintained a presence in Iran since 2003, beginning with a joint venture with SAIPA and Iran Khodro, and has produced 500,000 vehicles in the country to date. In first-half 2017, group sales in the country increased 100.3% year on year, for a total 68,365 vehicles and a 9.7% share of the market.
Renault currently produces the following models in Iran: Tondar, Tondar pick-up, Sandero and Sandero Stepway. The first vehicle models to be produced at the new facility will be the new Symbol and Duster.
“Our Group as the owner of the Negin Khodro Co., the existing establishment for Renault Network in Iran, is proud to be part of this industrial development,” stated Naser Haddadzadeh, Chairman of the NEGIN Holding. “As a family-owned private business in the country, N.H. Group envisages this joint venture with Renault and IDRO, as another possibility of a long-lasting partnership with Groupe Renault for years to come.”