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In May 2004, French company Renault-Nissan formed a joint-venture car manufacturing company called Renault-Pars to produce light passenger vehicles in Iran. 'Fifty-one percent of the company's shares are owned by Renault-Nissan and the remaining fourty nine percent by the Automotive Industry Development Company, a concern owned by the Iran's two main government-controlled carmakers, the Saipa Group and Iran Khodro.' (Middle-East finance and economy, October 2004) 

Renault's investment is the first large-scale, long-term direct investment in Iran by a French company since the 1979 revolution, which can be considered as the starting point for further foreign investment flows into the country.

Licensing

Licensing has been the only way in which foreign cars come to Iranian market. Iranian car manufactures were allowed to import limited number of cars, provided that they decided to start to build up the car within the country. So after the company import cars, under a licensing agreement start to transfer the assembly line (platform) including technological requirements from their licensing partner. After a period of assembling, by importing car components via their licensing partner, domestic manufacturers started to design the parts inside the firm and set a target to produce the parts by domestic suppliers. However, mostly due to lack of information and technology expertise the result was poor quality production in most of the cases, unless they had support from the foreign partner in production line in the main supplier firms.

Ultimately, the Iranian automotive manufacturers realised they needed the technology, expertise and management skills that foreign companies could provide.

France's Peugeot have been the first foreign company that signed an agreement with the state owned manufacturers, Iran-Khodro after 1979 (revolution). Their products are the Peugeot 405, Pars (Persia) and 206. The Peugeot 206 entered the market in the fourth quarter of 2001. Iran-Khodro suppliers (Sapco) are able to produce 87% of the Peugeot 405 parts, almost 80% of Pars Peugeot and 65% of Peugeot 206 domestically. 

France's Citroen also formed a licensing agreement with Saipa in the fourth quarter of 2001 to produce Citroen Xantia.

From Korea, Kia Motor with Saipa, are producing the Kia Pride. And Korean Daewoo and Kerman Motors had an agreement for Daewoo Cielo and Matiz which is finished by 2005. (Atieh Bahar Consulting, 2003)

The last licensing agreement will start in 2006 and Renault-Pars will produce the Logan under Renault license, a vehicle based on Type B of the L90 series of Renault automobiles. (Middle-East finance and economy, October 2004)

Also for the foreign partners the agreement can be with the export a predetermined percentage of the Iranian production to other countries. For example, France's Citroen is currently in partnership with Iran's Saipa, which assembles the Xantia. According to the agreement, 70% of the cars manufactured in Iran are to be exported back to France, which apparently also includes本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。