News ID: 255891
Published: 0335 GMT July 16, 2019

French carmakers post decline in vehicle sales following withdrawal from Iran

French carmakers post decline in vehicle sales following withdrawal from Iran

Following pulling out from Iran under threat of US sanctions, French giant carmakers, PSA and Renault announced that their sales slumped in the first half of the year.

According to a report by Reuters on Tuesday, sales of Renault were flat in a falling European market but down 27.7 percent in the sales region spanning Africa, the Middle East and India, largely as a result of Renault’s 2018 withdrawal from Iran under the threat of US sanctions.

Other French carmaker PSA said on Monday that its sales fell during January-June as it pulled out of Iran and sales in China plunged by nearly two-thirds.

Renault announced a 6.7-percent drop in first-half vehicle sales amid a global auto slowdown, but said a forthcoming product offensive would begin to help soften the blow in key markets.

Renault is scheduled to publish full first-half results on July 26.

Half of the overall 12.8 percent drop in sales by the maker of Peugeot, Citroen, DS, Opel and Vauxhall brands to 1.9 million vehicles was due to halting operations in Iran to avoid falling foul of US sanctions on the country.

On Monday, Iran launched the production of Peugeot 301 cars at the Iran Khodro (IKCO) plant.

Sorena Sattari, Iran’s vice president for Science and Technology, participated at the event.

He noted that 60 percent of the parts required for the Peugeot 301 production would be provided by domestic output, which can be increased to 80 percent in the future.

Sattari also added that about 300 Iranian parts suppliers were hired to manufacture components for this car.

He further added that the sedan Peugeot 301 fully complies with international standards.

Sattari pointed out that Peugeot 301 is produced at IKCO, while the French company Peugeot left Iran as a result of US sanctions.

He added that it was assumed that French companies would provide all parts and equipment necessary for this car production.

 

   
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