Decline in Renault's Automotive Revenue Due to Suspension of Exports to Iran and Asia

The revenue of the French company Renault from car exports in the third quarter of 2018 decreased by 8.4% due to reduced sales in Asia, particularly the suspension of exports to Iran, reaching approximately 10 billion euros. In a report published on Tuesday, October 23, Renault stated that it did not sell any cars to Iran during the third quarter of this year. However, the total car sales of this company to Iran during this year amounted to 96,000 units, which represents a 10% increase compared to the same period last year. Iran ranked ninth among the largest customers of this company, and the suspension of exports to Iran has significantly reduced Renault's revenue. Nevertheless, Renault claims that despite the drop in exports, orders for car purchases in the third quarter of 2018 increased by about 2.9%, attributed to an increase in orders in the Chinese market. Another French automaker, Peugeot Citroën, also announced on June 4 that it would exit Iran. This company had exported 440,000 cars to Iran last year. The third quarter of the year is roughly equivalent to the summer of this year. Statistics from the Iranian Trade Development Organization indicate that total car imports increased by 221% in the spring of this year. However, in the summer of this year, car imports decreased so significantly that total imports for the first half of the year showed a 68% decline. Iran itself announced a ban on car imports in July of this year, but statistics from the Trade Development Organization show that between July and the end of September, $193 million worth of cars were imported into the country. These cars were likely ordered and purchased earlier. Last year, Iran imported $1.839 billion worth of various passenger cars. Statistics from the Ministry of Industry, Mine and Trade indicate that the production of various cars in the country decreased by 46% in September of this year. Total car production in Iran in the first half of the year also decreased by 15%, reaching 686,687 units.