By signing an agreement with IDRO, Iran Khodro and Saipa, Renault has laid the foundations for its development in Iran with the creation of Renault Pars.

On March 16, the four parties signed the initial terms of their agreement for the creation, as of April 2004, of Renault Pars, a joint venture company, with 51% to be held by Renault and 49% by the Iranian company, AID co.

Car manufacturers Iran Khodro and Saipa will produce and market the X90 vehicle in Iran from 2006. The project will be coordinated by Renault Pars and the initial installed capacity of the two manufacturers will be 150,000 units each.

The agreement allows the creation of a joint venture company which will coordinate cooperation between Renault and the Iranian automotive industry.

Renault Pars will be held 51% by Renault and 49% by AID co, a common entity comprised of IDRO, Iran Khodro and Saipa. It will be established in April 2004.

Renault Pars, holder of the licence for the X90 vehicle, will be responsible in particular for engineering and quality, purchasing and logistics as well as the coordination of sales policy, marketing and aftersales service.

From 2006, Iran Khodro and Saipa will begin producing vehicles based on the Renault X90 platform and each manufacturer will have an initial capacity of 150,000 units.

Vehicle assembly will use both imported parts and local components. Sales of the vehicle will be handled by Iran Khodro and Saipa through their respective distribution networks.

Iran has a population of 68 million and its car market has experienced strong growth over the past three years. In 2003, almost 700,000 vehicles were sold. The country already has a car industry and a strong network of equipment manufacturers, which bodes well for the success of the project.

The X90 seems to be particularly well suited to the Iranian market. It was designed for countries in which there is a strong demand for economical cars built to top international standards.

Modern, attractive, and very roomy, with the dimensions of a family saloon, the X90 will come with a high level of equipment at a very competitive price.