French automaker Renault has agreed to boost its presence in Iran and step up the brand's growth.
The company signed a joint venture (JV) agreement with the Industrial Development & Renovation Organization of Iran (IDRO) and PARTO NEGIN NASEH Co, an importer of Renault products in Iran.
Renault will hold a majority stake in the joint venture company and the new company’s operations will include production of at least 150,000 vehicles per year, at a new plant.
The production is expected to support Renault’s existing production of 200,000 vehicles per year in the country.
The JV company will feature an engineering and purchasing centre, which will in turn support the development of local suppliers. The company expects to produce Symbol and Duster vehicles through the joint venture.
An engine plant is also being planned, along with the vehicle plant that was announced last year. The engine plant is expected to have a capacity of 150,000 units per year. The manufacturing plants will be located Saveh, located 120 km from Tehran and will be owned and operated by the joint venture company.
As per the JV deal, an exclusive distribution network for Renault will also be development, along with the existing network of NEGIN Khodro.
Groupe Renault executive committee member and chief competitive officer Thierry Bollore 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."
NEGIN Holding chairman Naser Haddadzadeh said: “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. 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.”
"Our joint-venture with our historical partners SAIPA and Iran Khodro will continue to produce and deliver the current range: Tondar, Tondar pick-up, Sandero and Sandero Stepway, independently of the start of this new JV.”
The JV agreement is still subject to several customary and regulatory approvals from the government of Iran.
