Renault may return to Iran if political situation eases

Article by Anita Panait, on August 7, 2013

Renault is aiming to return to Iran as soon as the political situation in the country eases, although its remains unclear when that will occur. Renault was forced to terminate shipments of knockdown kits to Iran, which it considers a key market, on July 1, 2013 after the United States government extended economic sanctions over the country's nuclear program to the auto sector.

Renault was one of few large European firms still doing business in the country. Renault sold 100,783 vehicles in Iran in 2012, making it the carmaker’s eighth largest global market in terms of sales, larger than Italy and Spain.

Likewise, Renault controlled 10 percent of the Iranian vehicle market in 2012. Thus, the loss of its business in Iran could prove to be a big blow for the French carmaker.  Renault, through Tehran-based partners Iran Khodro and Paris Khodro, also produces the Logan and Megane in Iran.

A spokesperson for Renault told Automotive News Europe that the French carmaker waiting for the economic sanctions to be lifted or the political situation to change before it resumes CKD shipments to Iran. Renault will wind down production of its vehicles in Iran when the kits already shipped to the country run out in the next few weeks.

The spokesperson, however, said that the production infrastructure used to build Renault cars in Iran will remain indefinitely. Renault was forced to write off the entire value of its Iran business, resulting to a EUR512-million ($680-million) charge against its second quarter earnings. No thanks to the economic sanctions against Iran, Renault's CKD to the country dropped 48 percent to 28,082 units in the first half of 2013.

Topics: renault

If you liked the article, share on:

Comments

Recommended

Nissan revealed that the new 2017 Rogue Sport crossover will be priced in the U.S. market at $21,420. Specifically, this is for the front-wheel drive version of the Rogue Sport...
by - April 26, 2017
Remember the E30 BMW M3? Yes, the one from 1990. If you remember it right, it was also the company’s most iconic car and probably one of the best BMW...
by - April 26, 2017
Ferrari is cooking up something interesting for us. The last time they released the 488 GTB was two years ago, followed by a 488 Spider and several versions of it....
by - April 26, 2017
After launching the latest version of the BMW M550i xDrive, the German carmaker is now introducing its diesel counterpart -- the new M550d xDrive (G30/G31). Available either as a sedan...
by - April 26, 2017
A lot of news has been going around about the 2018 Dodge Challenger SRT Demon lately, and people are arguing whether the 840 horsepower vehicle by Fiat Chrysler should be...
by - April 26, 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