Economy, Auto

JVs With Renault Ready for Takeoff

JVs With Renault Ready for TakeoffJVs With Renault Ready for Takeoff

A high-ranking delegation from Iran's automotive sector will soon be travelling to Paris to establish new business ties with global brands.

The highlight of the visit is that representatives of Iran's leading carmakers Iran Khodro Company and SAIPA will set up links with the global chain of Renault-Nissan group, Eghtesad News reported.

Reportedly, Iran's auto market will soon be welcoming new economy-class cars like Renault's KWID and Symbol.

Renault's KWID is expected to be produced in collaboration with IKCO and compete with SAIPA's Pride—one of the cheapest cars in the domestic market.

If, and that's a big if, Renault is able to offer KWID at the price it marketed in other markets such as India, it will easily overtake Pride and become the best-selling car in Iran.

The Indian-derived KWID has already been touted as the next best-selling car in the Iranian market, due to its modern styling and low price compared to European and Chinese equivalents.

Renault's Symbol will reportedly be made in collaboration with SAIPA and rival Peugeot 405 that is produced by IKCO.

According to CEO of Renault Pars Peyman Kargar, Renault has signed memoranda of understanding with both IKCO and SAIPA to produce the cars.

He added that "the details of the contracts are being worked out".

"We plan to set up separate joint ventures with each of the companies," he said.

"The agreement Renault has proposed is for the French company to have a 60% share while the Iranian partner will have a 40% share."

Kargar noted that this would mean that aside from manufacturing, Renault will also manage sales and after-sales services for the new models.

"This would ensure that we can deliver satisfactory services to our customers," he said.

IKCO's CEO Hashem Yekezare, however, has so far refused to admit his company will build the new Renault KWID model.

"Unfortunately I cannot talk about it," he said, adding that he is "not obliged to answer all questions."