Renault plans to double its market share in Iran image

The French automaker aims to significantly increase the output capacity and market share of its Iranian joint venture, as the economy opens up, a senior executive said on Wednesday.

Renault targets a 20 percent market share in Iran, up from 10 percent in 2012, said Peyman Kargar, vice president of Renault’s Africa, Middle East and India region, and CEO of Renault Pars. In order to reach the company’s mid-term plan, capacity will need to be doubled, Kargar said on the sidelines of a conference in London hosted by the Financial Times. In 2015, Renault sold 51,500 vehicles in Iran, giving it a market share of 4.8 percent. For more than ten years, Renault Pars, the joint venture with Iran’s two main auto manufacturers, Saipa and Iran Khodro, has enabled Renault to produce nearly 500,000 vehicles in the country. Last year, two new vehicles were build, the Logan Pick-up with Iran Khodro and the Sandero with Saipa.

Iran’s automotive industry has become a very luring sector for the global automakers since the international sanctions were lifted back in January. The country’s car market reached a peak of 1.6 million vehicles in 2011 and it should regain this level within 2 years, hitting 2 million vehicles a year by 2020, Renault and Peugeot-Citroen forecast. PSA announced at the end of January it has reached an agreement for a 50:50 venture with Iran Khodro. The plan is to start the production of 100,000 vehicles a year in the second half of 2017 and to double the output capacity at a later stage. For revamping the 50 years old factory near Teheran, both sides agreed to invest 400 million euros (446 million dollars) in the next five years for building Peugeot’s 208 hatchback, 301 sedan and 2008 crossover.

Via Reuters