Renault Inks JV in Iran
August 07, 2017
Renault has begun a joint venture agreement with the Industrial
Development & Renovation Organization of Iran (IDRO) and PARTO
NEGIN NASEH Co, an importer of Renault products in Iran.
The proposed joint venture company, of which Renault will be the
majority shareholder, though with a first period of joint
control with IDRO and PARTO NEGIN NASEH Co, will include an
engineering and purchasing centre to support the development of
local suppliers as well as a plant with an initial production
capacity of 150,000 vehicles a year, supplementing Groupe
Renault's existing capacity of 200,000 vehicles a year in the
country. The first vehicles to be produced at the plant will be
new Symbol and new Duster.
In addition to the vehicle plant announced in September 2016, an
engine plant is also planned with a capacity of 150,000 units a
The manufacturing facilities will be in Saveh, located 120 km
from Tehran. They will be owned and operated by the joint
The agreements also provide for the development of an exclusive
Renault distribution network, in addition to the existing
network of NEGIN Khodro.
"We are happy to sign this agreement with IDRO and PARTO NEGIN
NASEH Co. In a rapidly expanding Iranian market, it was vital to
implement plants, engineering and purchasing centre. This joint
venture will enable an acceleration of our growth in this
country" said Thierry Bollore, Member of Groupe Renault
Executive Committee and Chief Competitive Officer.
"The development of a commercial network specific to our brand
will reinforce Groupe Renault's position in Iran. The signing of
this new joint venture reinforces the strategic choices we have
made in Iran and will open new perspectives in a 2 million
vehicle market projected in 2020", said Stefan Mueller, Member
of Groupe Renault Executive Committee and Chief Performance
"Our Group as the owner of the Negin Khodro Co., the existing
establishment for Renault Network in Iran, is proud to be part
of this industrial development. As a family-owned private
business in the country, N.H. Group envisages this joint venture
with Renault and IDRO, as another possibility of a long-lasting
partnership with Groupe Renault for years to come", said Naser
Haddadzadeh, Chairman of the NEGIN Holding.
Our joint-venture with our historical partners SAIPA and Iran
Khodro will continue to produce and deliver the current range:
Tondar, Tondar pick-up, Sandero and Sandero Stepway,
independently of the start of this new JV.
Entry into force and finalization of the transaction remains
subject to a number of conditions precedents, including
regulatory approvals, formation of the new company and
preparation of the industrial assets for the project. The
parties expect completion to take place on or around October 30,
Renault has been present in Iran since 2003 through a joint
venture with SAIPA and IRAN KHODRO. Renault and its Iranian
partners have produced 500,000 vehicles to date.
In 2016, Groupe Renault sales increased 110.7% year on year, for
a total 108,536 vehicles and an 8.4% share of the market.
In first-half 2017, group sales in the country increased 100.3%
year on year, for a total 68,365 vehicles and a 9.7% share of
Renault currently produces the following models in Iran: Tondar,
Tondar pick-up, Sandero and Sandero Stepway.