According to reports, with the gradual relaxation of relations between Western countries and Iran, Renault Group plans to increase the production of four-cylinder engines at the Spanish factory and 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 its production from 940 to 1,500 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 major impact on the company's performance.
Iran used to be Renault Group’s eighth largest single market in the world. The company’s local sales are even higher than Italy and Spain. In 2012, Renault sold a total of 100,783 vehicles in Iran, which accounted for a market share of 10%.
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