Financial Tribune - French automaker Renault has registered a rather unprecedented increase in sales in Iran in the first quarter of 2017

Renault Group said sales in Iran rose by 161.5% in the first quarter of this year.

The group now has hold over 9% of the Iranian market, up 4.9 points, thanks to the success of its new models being sold at low prices compared to several other brands competing in Tehran and all major cities. This is up 0.6% since the 2016 figures were released.

Renault, in a press release, reclaimed its position as a major player in the saturated market last year, with increasing imports of fully built vehicles and also through partnership deals with the Industrial Development and Renovation Organization. The Paris-based firm also benefitted from the production of its latest Sandero and Sandero Stepway models in conjunction with Iran Khodro Group, the biggest carmaker in the country.

Renault’s proposal for the local market includes imports of fully built vehicles for bigger spenders, including the latest models available in all big markets. These include the upgraded Koleos large SUV, large Talisman models and range of Megane models (dubbed Scalia) in Iran.

Meanwhile the company plans, as part of its joint venture with IDRO, to produce three new models for the domestic market by the end of 2017 or early 2018.

These include the low-cost Kwid crossover and new models of Symbol and Duster.

A prelude to Kwid sales in Iran is in the Indian market, where the car was originally released. In the first quarter of that market Kwid registered 27,000 sales up 9.9%

The joint venture is due to produce 150,000 cars per year.

It was previously reported that Saveh, a city in Markazi Province (southwest of Tehran), would be the production center for the joint project.

Renault used to sell 10,000 cars in Iran market every month till 2013 before the international sanctions were tightened in 2011 and 2012.

Global Sales

Groupe Renault (including Lada) worldwide registrations increased by 15.8% in the global market y/y.The group’s share of the world market now stands at 3.8%, up 0.4 points on 2016.

The Renault and Dacia brands set new sales records for the first quarter. Renault Samsung Motors (South Korean Joint Venture) sales increased by 56.3% and those of Lada by 7%.

In Europe, the group’s share of the PC + LCV market increased 0.2 points to 10.1%. Sales grew 10% to 478,706 vehicles.

Renault’s own-brand continued to progress, with a 10.1% rise in registrations.

The market share for this brand reached 7.7%, up 0.1 points. Sales of ZOE electric car rose 57% and reinforced the group’s leadership with a 28% share of the electric vehicle market.