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TEHRAN: Iran’s official news agency says two Iranian companies have signed the country’s biggest-ever car deal with French multinational automobile manufacturer Groupe Renault to produce 150,000 cars, beginning in 2018.
IRNA says the deal was signed on Monday in Tehran.
The €660 million — or $778 million — deal follows the lifting of international sanctions after Iran’s 2015 nuclear agreement with world powers.
It’s expected to create about 3,000 jobs for the two companies, Iran’s IDRO and the privately owned Negin Group. Renault has a 60 percent partnership in the deal.
Last year, French carmaker PSA Peugeot Citroen reached a deal with Iran Khodro to open a plant producing 200,000 vehicles annually.
Iran produces about 1,350,000 vehicles a year, though authorities hope that number will reach 3 million annually by 2025.