TEHRAN- French carmakers are rushing into Iranian market in the absence of rivals.
PSA and Renault are turning the U.S. absence in the Iranian market into an advantage by piling into a resurgent market still off-limits to foreign rivals fearful of sanctions under Donald Trump's administration, Reuters reported on Tuesday.
Unrestricted by sanctions that remained on the books - keeping their U.S. and German competitors out, Peugeot and Citroen maker PSA and Renault are free to enter Iran's relatively untapped market.
Renault’s sales in Iran rose sharply (161.5%) for a market share of 9%, up 4.9 points, in the first quarter of 2017 compared to the same period of time in 2016, the company’s international website reported in late April.
According to the report, the increase has occurred thanks to the success of Tondar and Sandero in Iran.
Also, according to a report released by Renault in late March, the company could sell 13,449 cars during the first month of 2017 in Iran, showing a 348-percent increase compared to the same month last year.
In January 2016, Renault sold more than 3,000 cars in the Iranian market.
Meanwhile, Peugeot has agreed to make the Peugeot 2008 locally. This could be quite a boon for them because there's a 40 percent import tariff at the moment.