Peugeot Mandatory Replacement with Renault

Khodrocar – Two weeks ago, Peugeot announced to leave Iran due to new sanctions but after one week Mazda and Renault said they will continue their activity in Iran. These days Iran’s auto industry is struggling with different problems and these news were a relief to all hurts of auto industry. These problems have challenged the market in different times.

As Mazda and Renault stay in Iran, they can fill the gap of Peugeot which was a beneficial partner of Iran’s auto industry. At the current situation the market will be exclusive for Renault and they have to compete with Chinese companies instead of Peugeot.  

Now the next good news will be the second phase of Renault and IDRO contract which will keep the market alive for imported cars. In the imported cars’ market, Chinese are still active and there is no news about their exit from Iran.

IDRO and Renault contract were great news for Iran’s auto industry but it had several sides too. Some sides of their contract were undecided plan for Bon Ro Site and we have to see what will happen to this plan as Renault is going to stay in Iran.

"If Peugeot leave Iran entirely and auto making system work properly alongside a good part producing it will take at least two years for Renault to replace Peugeot in Iran.” Farbod Zaveh, an expert of auto industry said to khodrocar reporter.

"It seems Peugeot won’t leave Iran entirely and they are waiting to take more advantage from Iran but they would invest in Iran carefully. Therefore, supplying Peugeot part won’t face any difficulty. Also Renault announced they won’t leave Iran but they may reduce their activity. Reviewing Peugeot’s production statistics say that they won’t leave Iran entirely.” He continued.

"According to Carlos Ghosn, Renault may decrease its activity in Iran. On the other hand, it seems that both companies agreed to work in peace and expand or limit their activity. Maybe, international restrictions force them to leave Iran.” He continued.

"I believe that before America’s sanctions, local policies would harm Iran’s auto industry. Therefore, Iran needs a good strategy to hurt less. We can manage auto industry and presence of foreign companies with good management decisions.” He added.

It seems that after Renault announcement, pre-judgments about Iran and Renault will end and they will sign the contract soon to cover the one year delay of the contract.

Khodrocar Reporter: Negar Mir Karimi

Khodrocar Translator: Amin Zamani