Iran signed the country's biggest-ever car deal worth €660 million with French carmaker Group Renault to produce 150,000 cars a year.
Renault signed a joint venture deal with the Industrial Development & Renovation Organization of Iran (IDRO) and PARTO NEGIN NASEH Co, an importer of Renault products in Iran.
Chief Competitive Officer of Groupe Renault Thierry Bollor, left, Chairman of Industrial Development
and Renovation Organization of Iran, IDRO, Mansour Moazami, center, and Negin Group CEO
Kourosh Morshed Solouk join hands after signing a deal in Iran. (AP)
Renault and other European companies are looking to rebuild their presence in Iran, following the lifting of international sanctions. Renault says that in the first half of 2017, its sales in Iran increased by more than 100 percent to 68,365 vehicles a nearly 10 percent market share.
The plant, located 120 kilometers (75 miles) outside Tehran, will produce Duster and Symbol cars starting in 2018, adding 150,000 vehicles a year to the Iranian market above Renault's already existing capacity of 200,000 vehicles a year in Iran. Renault, a majority shareholder with a 60 percent share in the deal, will have its own distribution network in Iran for the first time.