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Iranian joint venture car manufacturer Renault Pars has officially inaugurated its Renault Sandero assembly line
The car will be manufactured in both manual and automatic gearbox models, according to a report in Iran’s IRIB. The two variants of Sandero consume 7.6 litres and 5.3 litres per 100 kilometres respectively, and the car meets euro-4 standards.
Mehdi Jamali, managing director of Iranian carmaker Saipa, said, that 10,000 Sanderos will be manufactured by the end of March 2016. “Despite all the problems as a result of the sanctions, we managed to design and manufacture Sandero in two years,” he added.
Saipa, along with Iran Khodro and Pars Khodro, is a local manufacturer that assembles completely knocked down Renault cars for the Renault Pars joint venture. The joint venture company, established in 2004, is a partnership between Renault and Industrial Development and Renovation Organization of Iran.
Renault had to suspend its Iran business in 2013 after stricter sanctions were imposed that specifically included tough restrictions on banking transactions with the country. The French automaker had suffered a loss of US$680mn as a consequence. The company is now hoping to restore its share in the lucrative Iranian market.
Another French automaker, Peugeot, is in talks with Iran Khodro to provide parts to the Iranian company. It also wants to establish a joint venture with a local business to produce cars.
The automobile industry accounts for almost ten per cent of Iran’s GDP. The country is one of the biggest car manufacturers in the region.