EghtesadOnline: As per an agreement signed on Sunday between Renault and its local partners, the French car company will increase production in Iran.
The major automaker signed the deal with Iran Khodro and Pars Khodro, a subsidiary of Iran's second largest automaker SAIPA. It is valid for three years during which 700 cars will be produced per day in Iran, according to a press release by the firm.
Renault Pars is a joint venture established in 2004 between the French auto giant and Iran’s Industrial Development Renovation Organization.
The company manages the assembly of completely knocked-down kits of Renault's Tondar L90 (Dacia Logan) and Sandero models, two quality cars under local license, Financial Tribune reported.
Last week it was reported that Renault Pars is set to sign a contract with a European supplier and an Iranian company to produce anti-lock braking system or anti-skid braking system (ABS) and electric-power steering (EPS).
Mega Motor, a subsidiary of SAIPA, is set to indigenize auto parts production of the French brand.
Charkheshgar, another company, will reportedly produce gearboxes for the new French branded vehicles. The firm is based in Tabriz in the northwest.
Tondar 90 and Sandero are 60% and 40% locally produced, with the rest of the parts coming from global auto suppliers.
The French company’s production and sales outlets in Iran sold 68,365 vehicles in the first-half of the current year.
Sales rose 100.3% y/y for a market share of 9.8% (up 4 points) thanks to the success of Tondar and Sandero models. I
In H1, Iran was the eighth biggest market for the French carmaker following Brazil and ahead of the UK and Argentina.
In the wider Middle East and Africa region and India, sales rose 19.3% giving the firm an overall market share of 6.4%.