|Iran sanctions cut Renault’s Asia-Pacific sales 2.8% in H1: report||
TEHRAN - The sales of French carmaker Renault in Asia-Pacific region dropped 2.8 percent in the first half of 2014 due to Western sanctions imposed against Iran over its nuclear program, according to a recent report published by the Automotive World website.
Renault sold a total of 110,903 vehicles in Asia-Pacific region in the first half of 2014, down 12 percent year on year, the report added.
Sanctions on Iran’s automotive sector were suspended in November 2013 in the wake of an interim deal by Iran and the 5+1 group (the five permanent members of the UN Security Council plus Germany) easing Iran’s ability to import parts. The penalties are expected to be permanently lifted with a July agreement.
On June 20, Reuters quoted a senior executive of Renault as saying that the group is looking for a financial partner to resume full operations in Iran and is in talks with the U.S. and French governments on the issue.
Renault is keen to start making and selling vehicles in Iran again with local partners Iran Khodro and Pars Khodro, to rebuild the significant market position it enjoyed before international sanctions on Tehran were introduced in 2011.
Renault looks to be among the clearest beneficiaries of the interim deal that lifts some sanctions on Iran, with hoping to leap back into the Middle East’s biggest auto market.
The French carmaker sold 103,000 vehicles in Iran last year before leaving. Iran itself counts car manufacturing as its second-biggest industry after oil, accounting for 10 percent of its gross domestic product.
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