Renault may miss its target of selling 1m low-cost vehicles this year, according to Les Echos newpaper.

The company’s entry-level model could be wide of their global goal by as much as 5%, the newspaper said, quoting Renault programme director Arnaud Duboeuf.

Particularly badly hit are sales in Iran where Renault assembles the Logan and Megane 2 in a joint venture. Financial sanctions against Iran are having an effect compounding declining European demand.

The Entry range, which includes models such as the Duster SUV, Logan sedan and Sandero compact, has been a major sales driver for Renault during Europe's worst market slump in decades.