French Renault to produce cars with Iranian companies

French car maker Renault will produce five new products in Iran in collaboration with two major Iranian companies, semi-official Mehr news agency reported on Sunday.

Saipa Motor Corporation and Iran Khodro Company (IKCO) will produce three and two new cars, respectively, in cooperation with the Renault, said Fardad Daliri, deputy head of the Industrial Development & Renovation Organization of Iran.

The return of the French car makers to the Iranian car market began after the implementation of the nuclear deal between Iran and the world powers (known as JCPOA) in January.

Last week, IKCO and the French carmaker Peugeot-Citroen (PSA) agreed to launch a joint company in the capital Tehran to produce cars.

The 50-50 joint venture, if finalized, would be worth 400 million euros, Tasnim news agency said.

The would-be company would manufacture the Peugeot 208, the 2008 sport utility vehicle, as well as 301 compact utilizing the local potential to make most of the parts.

Thirty percent of the cars, to be produced jointly, would be exported to the Middle East and other countries, Iran Khodro's chief executive, Hashem Yeke Zareh, was quoted as saying.

Under the U.S.-led sanctions against Iran on the latter's disputed nuclear issue, Renault and PSA left Iran in 2011.