Renault sales fall due to Iran sanction
French automotive giant Renault reported a decline in its first-half sales in July since it was forced to exit from Iran's market due to US sanctions.
Iran Press/Iran news: Renault sales director, Olivier Murguet cited problems in Iran's market due to US economic sanctions, saying that sales were down about 6 percent from a year earlier to 1.94 million vehicles.
Much of the downturn came from a decline in the automotive division which fell by a steeper 8.4 percent at 10.06 billion euros, BBC reported.
The slump contrasted with Renault’s July report of record revenue of 9.8 percent in the first half, during which sales in the Iranian market more than doubled to 68,365 vehicles.
Murguet added despite the fall, the company was confident the second half of 2019 would be better. "For the second half, we should see a slight increase compared with last year thanks to our new model launches," Murguet told reporters in a conference call.
Renault and its French rival PSA Group were among the first European companies which rushed to Iran to tap into a pent-up demand for new automobiles after sanctions were lifted on the country in 2016.
Following the re-imposition of unilateral sanctions, Renault withdrew from Iran. 101/218