Groupe Renault and Industrial Development & Renovation Organization of Iran (IDRO) and PARTO NEGIN NASEH Co, an importer of Renault products in Iran, has put pen to paper on a joint venture agreement to increase production capacity.
The venture, which will see Renault be the majority shareholder, will include an engineering and purchasing centre to support the development of local suppliers. There will also be a plant with an initial production capacity of 150,000 vehicles a year, supplementing Groupe Renault’s existing capacity of 200,000 vehicles a year in the country. The new Symbol and Duster models will be the first vehicles produced at the plant.
The plant will be in Saveh, located 120km from Tehran. They will be owned and operated by the joint venture company. In addition to the vehicle plant announced in September 2016, an engine plant is also planned with a capacity of 150,000 units a year.
“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” said Member of Groupe Renault Executive Committee and Chief Competitive Officer, Thierry Bolloré.
According to BBC, part of the deal is that 30% of the cars and parts will go for export.
“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”, said Stefan Mueller, Member of Groupe Renault Executive Committee and Chief Performance Officer.
The Groupe Renault has been present in Iran since 2003. Renault and its Iranian partners have produced 500,000 vehicles to date.