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Groupe Renault To Boost Car Sales and Engineering Industry in Iran With New Joint Venture
6 Sepr 2017
Iran’s car manufacturing industry has just sped up with Groupe Renault announcing the signing of a joint venture agreement with the Industrial Development and Renovation Organization of Iran (IDRO) and Parto Negin Naseh Co, an Iranian importer of Renault products.
The proposed joint venture company makes Renault the majority shareholder, though with an initial period of joint control with IDRO and Parto Negin Naseh Co. The project will involve an engineering and purchasing centre, which supports the development of local suppliers, exclusively selling Renault cars, plus an engine plant with an initial production capacity of 150,000 vehicles a year. This adds to 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 new models, the Symbol and the Duster.
Manufacturing facilities will be located in Saveh, located 120 km from Tehran and will be owned and operated by the joint venture company. The exclusive Renault distribution network, will operate in addition to the existing network of Negin Khodro.
Thierry Bollore, Member of Groupe Renault’s Executive Committee and Chief Competitive Officer said:
“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".
According to Stefan Mueller, Member of Groupe Renault Executive Committee and Chief Performance 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”.
Finalisation of this latest business transaction with Iran remains subject to a number of conditions and precedents, including regulatory approvals, the formation of the new company and preparation of the industrial assets for the project.
Completion is expected by the associated partners to take place around the end of October and is another push forward in boosting Iran’s manufacturing sector in a high demand industry and could encourage other overseas corporations to do business in Iran.