Peugeot and Renault in pole position to enter Iran's car market
- 9 years ago
It’s Iran’s biggest industry after oil: car-making. And the expected phasing out of sanctions following July’s nuclear deal means the race is on to enter the huge domestic market.
Before sanctions were imposed, choking domestic demand, Peugeot was the biggest selling European manufacturer in Iran.
PSA is looking to strike a bigger deal with Iran Khodro, the country’s largest manufacturer, though its French rival Renault is also looking to get in on the act.
Iran is already the Middle East’s largest car market, and despite the current slump there are forecasts that growth could accelerate rapidly over the next few years with the lifting of sanctions.
Economy Analyst Saeed Leilaz believes however that there will be no immediate effect.
“I know that Iran Khodro and Peugeot are having really constructive negotiations and other Iranian factories with Renault; however, we can only import new products from these companies. Neither of them will make new investment in Iran,” he said.
Before sanctions were imposed, choking domestic demand, Peugeot was the biggest selling European manufacturer in Iran.
PSA is looking to strike a bigger deal with Iran Khodro, the country’s largest manufacturer, though its French rival Renault is also looking to get in on the act.
Iran is already the Middle East’s largest car market, and despite the current slump there are forecasts that growth could accelerate rapidly over the next few years with the lifting of sanctions.
Economy Analyst Saeed Leilaz believes however that there will be no immediate effect.
“I know that Iran Khodro and Peugeot are having really constructive negotiations and other Iranian factories with Renault; however, we can only import new products from these companies. Neither of them will make new investment in Iran,” he said.