News ID : 2774
Publish Date : 06 June 2018 - 09:15
The European and Asian automakers are worried about United States sanctions against Iran and this made French companies to leave Iran’s vehicle market.
Khodrocar – From the first day of Donald Trumps’ presidency, he was serious about implementing multilateral sanctions about Iran and one of his concentrations was Iran’s automotive market. This means that the companies must move prudent.

Iran’s automotive industries is the country’s most important industry and United States wants to paralyze it with some tough sanctions. According to the rules of sanctions, the companies that are working with Iran and United States at the same time, must stop their activity in Iran or US will put them in its black list. This way, many companies will rethink about their relationship with Iran.

Automotive companies are no exceptions. US will make the companies to choose one between US or Iran by putting pressures on them and also threatening them.

These pressures made PSA to announce that they will leave Iran due to sanctions. This company hold almost 40 percent of the Iranian auto market, which saw total sales of 1.59 million cars in 2017, according to global automotive trade association OICA.
PSA gave up on 25 percent of Iran’s market share and now will concentrate on returning to US market again. They have a long-term plan for it.

History was repeated and the French automakers showed their unreliable side once again and the Iranian authorities which have a weak historical memory by trusting them, are now going to be left alone again.

Renault Leaves Iran too?
Renault is another French company which is active in Iran auto market and made a name for itself in it. By inking a joint venture called "Bonro”, this company showed its seriousness about working in Iran, but like always, there were problems about this contract and it suspended.

On the other side, its partner, Nissan has a very good share of market in United States and obviously do not want to lose it. Renault-Nissan experienced a total sale of 1 million and 593 thousand 464 cars in North America in 2017 and placed second in global vehicle sales, after Volkswagen.

Maybe this issue will make Renault to quit Iran’s market in order not to lose North America’s auto market.

Khodrocar – PSA announced its exit and now if Renault will do the same thing, Iran’s automotive market will experience a shock.
Now the important question is that what happens to the costly automotive contracts and joint ventures with French companies?

Khodrocar Reporter and Translator: Maziyar Jafarieh
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