Renault hopes to quickly resume production in Iran
 

Renault hopes to resume quickly  its activities in Iran  after the effective lifting of sanctions against Tehran expected in January 2014.  The manufacturer states that it will anticipate the activity resumption in order to be operational as quickly as possible.


Renault was an important player in the Iranian automotive market until it freeze its activities in July due to the tightening up of the embargo decided by the Americans. The French automaker sold 103,000 vehicles in Iran in 2012, most of these vehicles being produced in Iran (this volume represented 5% of the world production of Renault. The figures for 2013 are not yet known but they will likely be closer to 50,000 than 100,000.


Vehicles manufactured in Iran until last summer were Tondars, cars derived from first generation of Dacia Logan which has been manufactured in Romania from 2004 to 2012.


Even if Renault and PSA have stopped production in Iran, automobile demand in this country remains very important, since the fleet of 20 million cars is aging and composed mostly of old Paykan whose origins date back to the 60s, and the rate of motorization in Iran remains low ( 90 cars per 1 000 inhabitants , against more than 500 in Europe). This market has a potential of 1.5 to 2 million cars per year (equivalent to the Italian market). However it will not exceed 800,000 units in 2013
(
against 1.6 million in 2011 and $ 1 million in 2012) due to the embargo.


13-50-10  
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