Lifting of economic sanctions to boost Iranian automobile market

Automobile company Renault is progressively looking to intensify operations across Iran on the back of recent economic sanctions being lifted from the region by the worlds superpowers.

Renault has somewhat been active within the Iranian automobile market since 2003, working with partners SIPA and Iran KHODRO to produce half a million vehicles. They are now looking to step up their cooperation and prepare other models.

The Iranian automobile market poses great potential for manufactures with a predicted two million vehicles set to be on the region’s roads by 2020.

With a market amounting to two million vehicles by 2020, Iran has undeniable potential. Renault has ambitious plans in Iran and advanced discussions are currently underway with Saipa and Iran Khodroto step up our presence, develop our structures and support the automobile sector in Iran,” said Bernard Cambier, Director of the Africa-Middle East-India region.

The recent developments have spun from Iran’s President, Hassan Rouhani who recently visited Paris to bolster French-Iranian relations and discuss future trade agreements said to be worth 22 billion euros with a variety of large corporations including French carmaker Peugeot.

French President François Hollande stressed in a press conference that the new relationship is wholly dependent Iran keeping to nuclear commitments.

In 2015, Group sales in Iran soared by 56.1% compared to 2014, to reach a total of 51,500 vehicles and 4.8% of market share.