Groupe Renault signed a joint venture agreement with the Industrial Development & Renovation Organization of Iran (IDRO) and an importer of Renault products in Iran to build the local supply network as well as a plant with an initial production capacity of 150,000 vehicles a year.

France-based Renault has an existing plant in Iran that produces 200,000 vehicles a year. The first vehicles to be produced at the new plant will be the Symbol and Duster. The proposed joint venture company, with Renault as the majority shareholder, will include an engineering and purchasing center to support the local supply chain. An engine plant is also planned with a capacity of 150,000 units a year.

The manufacturing facilities will be in Saveh, some 120 km from Tehran. They will be owned and operated by the joint venture company. The agreements also provide for the development of an exclusive Renault distribution network. The parties expect the agreement to be competed on or around October 30.

Groupe 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 the market.

Renault currently produces the Tondar, Tondar pick-up, Sandero, and Sandero Stepway models in Iran.