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French automaker Renault said it had signed an
agreement with Iran's state auto holding company Idro for the joint
production and marketing of Renault's new X90 low-end model, aimed at
emerging markets.The joint venture will be launched in early 2004, with X90
production slated to begin in 2006. It will be held 51 percent by Renault
and 49 percent by AID, an entity composed of Idro and Iran's two main
automakers, Iran Khodro and SAIPA.
The joint venture plans to invest 300 millions euros (352.7 million dollars)
in the first phase of the project, a Renault spokesman said.
Production will begin at existing Khodro and SAIPA plants, with initial
capacity of 100,000 vehicles for each company. Depending on demand, a new
production site could be built by the Renault/AID venture.
"This programme is in keeping with Renault's international development
strategy, which foresees an annual production of over 500,000 units of this
(X90) model throughout the world by 2010," Renault said.
The code-named X90 car will also be produced from 2004 in Romania, where it
will be carry a sticker price beginning at 5,000 euros.
It also will be assembled in Russia, Morocco and Colombia.
In Iran, Iran Khodro and SAIPA will be responsible for marketing the X90.
These two groups already are partners with Peugeot and Citroen, the two
brands of the French group PSA. Peugeot sold almost 119,000 cars in Iran in
the first nine months of 2003, and Citroen sold 3,200 units.
Until now, however, their rival Renault had not been present in the Iranian
market, where foreign car imports have been banned since the 1979 Islamic
revolution.
In recent years PSA; Japanese automakers Nissan, 44.4 percent owned by
Renault, and Mazda; and South Korean company Kia have been producing cars in
Iran with local partners.
Iran, with its population of 67 million, has had a booming car market for
the past three years, Renault noted. The French company estimated the
Iranian market would reach 700,000 vehicles this year. |
