Report: Iran Sanctions Cut Renault's Asia-Pacific Sales 2.8 Per Cent In H1

TEHRAN, July 9 (Bernama) - French car maker Renault reported a 2.8 percent fall in sales in Asia-Pacific region in the first half of 2014 due to sanctions imposed on Iran over its nuclear programme, the Automotive World said in its latest report.

Renault sold a total of 110,903 vehicles in Asia-Pacific region from January to June this year, down 12 percent year on year, Iran's Mehr News Agency (MNA) reports quoting the report.

Sanctions on Iran's automotive sector were suspended in November 2013 in the wake of an interim deal by Iran and the 5+1 group (five permanent members of UN Security Council plus Germany), easing Iran's ability to import parts.

The penalties are expected to be permanently lifted with a July agreement.

On June 20, Reuters quoted a senior executive of Renault as saying the group is looking for a financial partner to resume full operations in Iran and is in talks with the U.S. and French governments on the issue.

Renault is keen to start making and selling vehicles in Iran again with local partners Iran Khodro and Pars Khodro to rebuild the significant market position it enjoyed before sanctions on Tehran were introduced in 2011.

Renault looks to be among the clearest beneficiaries of the interim deal that lifts some sanctions against Iran, with hopes to re-enter the Middle East's largest auto market.

The French carmaker sold 103,000 vehicles in Iran last year.


We provide (subscription-based) 
news coverage in our
Newswire service.