Comprehensive foreign reports, as the relationship between Western countries and Iran gradually eases, Renault Group plans to increase the production of four-cylinder engines in the Spanish factory, to prepare for the restoration of its export business to the Iranian market.
The Renault Group has said that it will expand its K4 engine at its Madrid plant in Spain and increase production from the current 940 units to 1,500 units every two weeks. The K4 is a 1.6-liter displacement four-cylinder engine mounted on several Renault models in the Iranian market.
In July 2013, as the U.S. government stepped up its economic sanctions against Iran, Renault was forced to terminate its all-parts (CKD) export business to Iran, which also had a significant impact on the company's performance.
Iran was once Renault Group’s eighth largest single market in the world, and the company’s local sales were even higher than Italy and Spain. In 2012, Renault sold a total of 100,783 vehicles in Iran with a market share of 10%.
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