Iran signed the its biggest-ever car deal with French car manufacturer Groupe Renault on Monday to produce 150,000 cars, as of 2018, as abcnews.go.com informs.
The car deal is expected to create about 3,000 jobs for the two Iranian companies involved: IDRO, or the Industrial Development and Renovation Organization of Iran, and the privately owned Negin Group. The IDRO will own 20 percent of the new venture and Parto Negin Naseh will hold the other 20 percent. Renault has a 60 percent partnership in the deal.
The plant in Saveh, a Tehran suburb, will produce Duster and Symbol cars. Renault will be majority shareholder, and have its own distribution network in Iran for the first time. One element of the deal is that 30 percent of the cars and parts will go for export.
The EUR 660 million deal follows the lifting of international sanctions after Iran’s 2015 nuclear agreement with world powers.
Production, initially of its Duster and Symbol vehicles, will then be ramped up to 300,000 cars per year by 2022. Renault already makes about 200,000 cars per year in Iran, where it has been producing vehicles since 2004.
In first-half 2017, Groupe Renault sales in Iran doubled year on year, for a total 68,365 vehicles and a 9.7 percent market share.