Renault signs major car deal with Iran

French carmaker Renault announced on Monday that it has signed an agreement with Iranian authorities and its local partner to build a car manufacturing plant to produce 150,000 units a year.

The plant will be a joint venture with Renault controlling 60 per cent, and the remaining 40 to be equally distributed between the Industrial Development Renovation Organization of Iran (IDRO) and Iranian automaker Parto Negin Naseh, Efe news reported.

The agreement, which was already pre-signed in September 2016, provides for the creation of an engineering and procurement centre "to support the development of local suppliers" and "a plant with an initial production capacity of 150,000 vehicles a year," the company said in a statement.

At present, Renault has a production capacity of 200,000 cars a year in Iran through a joint venture with Iranian automakers SAIPA and Iran Khodro, which produce and distribute the Tondar, Tondar pick-up, Sandero and Sandero Stepway models.

--IANS

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