PARIS -- Renault said on Monday it would create a joint venture with an Iranian consortium to build and sell its cut-price X90 car in the fast-growing market.
Renault said it would hold 51 percent of the joint venture while Iranian company AID -- a consortium of the public auto industry body IDRO and Iran's two main carmakers -- would hold 49 percent.
The venture would be launched in early 2004 and production would start in 2006, with an initial capacity of 200,000 cars per year, built and marketed by the two Iranian auto firms Iran Khodro and SAIPA.
Renault, which said last month it was in talks with IDRO to start a car plant in Iran but that nothing had been finalised, has already signed deals to make the X90 in Russia.
The company said it expects annual production of the model to top 500,000 units worldwide by 2010.
It said that depending on growth in the Iranian car market, the joint venture could build an extra assembly unit to meet demand. Some 700,000 cars are expected to be sold in Iran this year.