Renault Launches Another Carmaking Partnership in Iran

Renault SA is launching a venture with Iran’s Industrial Development & Renovation Organization (IDRO) and a local Renault importer Parto Negin Nasheh Co. to build cars for the domestic market.

The partners plan to open an assembly plant and engine facility—each with capacity to make 150,000 units per year—in Saveh. The group also will establish an engineering and purchasing center there to help build a local supply base.

Renault will be the majority shareholder in the venture, which is expected to be finalized by the end of October. The partners didn’t indicate when production will begin. But they say their first two models will be Renault’s new Symbol small sedan and Duster small SUV.

Renault already produces four models in Iran through its long-running partnership with Saipa and Iran Khodro. That venture builds the Tondar, a small sedan known in other markets as the Logan, and a pickup truck variant; and the Sandero small car and Sandero Stepway mini-crossover vehicle.

Last year Renault’s sales in Iran doubled to 108,500 vehicles. Sales through the first half of 2017 have doubled again, to 68,400 units.