Renault has restarted shipping components to Iran for Tondar (Dacia) models as the first fruits of a thaw in western sanctions against Tehran take shape.
Western powers imposed a series of crippling sanctions on Iran in an attempt to dissuade Tehran from what they see is its ambition to enrich uranium for nuclear weapons, but recent breakthrough talks in Geneva saw limited progress on trade barriers that some have speculated could lead to the auto industry benefiting by up to US$500m.
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Both Renault and PSA Peugeot Citroen have maintained ties with Iran and a recent automotive conference in the Iranian capital, also saw a significant delegation from French suppliers association, FIEV, led by its vice president, Arnaud de David-Beauregard, attend with 16 companies from the body.
“The Geneva agreement – it is good news because the Iranian market is important for us,” a Renault spokeswoman told just-auto from Paris. “But saying that, one thing not yet resolved is financial flow restrictions on France.
“This has not been settled and is key for us to [do] business. To be paid when you send components – because although the embargo has been partially lifted it is step by step.”
“It [sanctions relief] only covers the automobile and two or three sectors. It is still complicated – discussions are still going on at [a] diplomatic level.”
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By GlobalDataSanctions have cost Renault around 64,500 sales, but the easing of auto restrictions should see the French automaker gradually increase shipments to the middle east country this year.
Renault regional chief, Gilles Normand, said the next six months presented an opportunity for component exports for assembly in Iran, while also making reference to the importance of finance flow.
The Tondar90 is a version of the first generation Dacia/Renault Logan built by both IKCO and SAIPA.
Renault conducts business with both major Iranian automakers, Iran Khodro and SAIPA.
A significant easing of tension appears to have been triggered by the election last year of new Iranian President, Hassan Rouhani, who has made some notably doveish noises towards the west.
Rouhani was also at the recent World Economic Forum in Davos, Switzerland where he met European Commission president, Jose Manuel Barroso and expressed the hope for better relations with the west.
The Iranian President specifically addressed the nuclear talks with the so-called P5+1 group – the US, UK, France, Germany, Russia and China as well as the European Union and Iran.
“If the Non-Proliferation Treaty is considered the basis of the work by the negotiators in the nuclear issue, matters could be resolved immediately and in a short time,” Rouhani said.
At the end of last year, European automotive supplier association, CLEPA CEO, Jean-Marc Gales, also underlined the future potential of Iran for his members.
“Iran is a very interesting automotive market because in terms of production, it is one of the top 15 countries,” Gales told just-auto.
“It has a middle class and if this country opens up more than it has now, it will be a substantial market and suppliers need to make sure they get their fair share and not leave [it] to the already well-implanted Japanese and Korean companies.
“We need to overcome the political issues right now with Iran, but nonetheless it is a very interesting market.”
Renault imports parts as well as having localised production in Iran and has a subsidiary known as Iran Pars, 51%-owned by the French automaker and 49% by a domestic partner.
Neither IKCO nor SAPIA were immediately available for comment.
