Renault may re-enter Iran once sanctions are lifted

Article by Christian A., on January 27, 2014

Renault may re-enter Iran once trade sanctions against the country are lifted with the auto market expected to gain by at least 50 percent, chief executive Carlos Ghosn said. He said at the World Economic Forum in Davos, Switzerland that the lifting of economic sanctions would benefit Renault since "French brands have always been very popular" among car buyers in the country.

"Even with all the sanctions, the Iranian market represents 700,000 to 800,000 cars," Ghosn noted in a Bloomberg Television interview, adding that once an agreement is in place allowing resumption of trade, Iran’s new-car market could jump to between 1 million and 1.5 million cars.

Renault halted sales of component kits for assembly in Iran in 2013 because of trade sanctions. Renault posted a 3-percent rise in global sales in to 2.63 million cars and light commercial vehicles, but could have sold more if it had not stopped selling them in Iran.

The carmaker sold 64,500 vehicles less in 2013 compared to 2012, Renault said on Jan. 21.

The termination of operations in Iran led to EUR512 million ($698 million) in first-half provisions, which contributed to a 95-percent drop in net income in the period.

Iran is in discussions to relax trade and financial sanctions imposed, hurting global deliveries in 2013 at PSA/Peugeot-Citroen.

Ghosn remarked that the presence of Iranian President Hassan Rouhani at the Davos conference "is great news" and shows that talks on resuming international connection are "well engaged."

Topics: renault

If you liked the article, share on:

Comments

Recommended

There is definitely a second-generation Super Series from McLaren. Even in camouflaged form, it is simply incredible. But while we still don’t have the full data on how truly dynamic...
by - February 25, 2017
A lot of fans are excited with the news that Porsche could be unveiling a performance version of its Panamera 4 E-Hybrid plug-in hybrid during the 2017 Geneva Auto Show. ...
by - February 25, 2017
Tesla is finally setting a more “definite” schedule with regards to the official launch of the Tesla Model 3 electric car. A “limited production” is said to be slated to...
by - February 25, 2017
Are you a big fan of legendary boxer Mike Tyson, the former heavyweight world champion? Or are you a big fan of the iconic Ferrari F50? Either way, you will...
by - February 24, 2017
It seems that AM-RB 001 hypercar is not the only vehicle project that Aston Martin and Red Bull Racing has gone into. This time, don’t expect something as outlandish as...
by - February 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries