PARIS (Reuters) -France's PSA Group is pushing ahead with an Iranian plant investment and production ramp-up in the face of a hardened U.S. stance against Tehran under President Donald Trump that could play to the carmaker's advantage, a senior executive said.
The group's Peugeot brand is about to begin production with local partner Iran Khodro, while PSA is also preparing to invest more than 100 million euros ($106 million) in a new Citroen plant with partner SAIPA, PSA Middle East chief Jean-Christophe Quemard said.
Peugeot returned to Iran last year after an international nuclear deal and has reclaimed its place as the country's top-selling car brand with a 32 percent market share last year, according to IHS Automotive data.
The carmaker inked a 400 million euro ($424 million) Peugeot production agreement last June and a 300 million deal for Citroen four months later.
The renewed pressure from Washington will probably extend PSA's lead as rivals hold back from re-entering Iran, Quemard told the press call from a Tehran automotive conference.
"This is our opportunity to accelerate," he said. "It will become even harder for American companies to operate, that's for sure. We've opened up a lead and we plan to hold on to it."
****PSA Middle East chief Jean-Christophe Quemard (R) and Iran Khodro CEO Hashem Yekezare in a ceremony to sign a cooperation agreement between the two companies held in Tehran in 2016.