CEO Carlos Ghosn said Renault would be willing to re-enter Iran once trade sanctions against the country are eliminated as the auto market there is poised to grow by at least 50 %.
Once an agreement is in place enabling trade to resume with Iran, the country’s new-car market could jump to “anywhere between 1 million to 1.5 million cars,” Ghosn said in a Bloomberg Television interview.
“Even with all the sanctions, the Iranian market represents 700,000 to 800,000 cars,” Ghosn said.
The lifting of economic sanctions would benefit Renault because “French brands have always been very popular” among Iranian car buyers, Ghosn said at the World Economic Forum in Davos, Switzerland.
Renault stopped selling component kits for assembly in Iran last year, in line with trade sanctions. The shutdown of business with Iran resulted in a first-half provision of 512 million euros ($698 million), contributing to a 95 % plunge in net income in the period.
Iran is in talks to loosen trade and financial restrictions imposed during an international dispute over the purpose of its nuclear energy program. The sanctions also hurt global deliveries last year at Paris-based PSA/Peugeot-Citroen.
Renault’s global sales, including its Dacia and Samsung brands, rose 3 percent last year to 2.63 million cars and light commercial vehicles. Growth was held back marginally as the manufacturer stopped sales in Iran, which cost the company 64,500 deliveries versus 2012, Renault said on Jan. 21.
Via Automotive News Europe