Officials from Renault and the Iranian government made a joint announcement. The French company is to form a joint venture with a local carmaker and set up manufacturing facilities outside the capital, Tehran.

The goal is to roll out 300,000 vehicles annually by 2024. Renault will spend about 780 million dollars.

Iran has a population of about 80 million, and is a major auto market in the region. Iranian officials have been trying to boost the domestic auto industry to help revitalize the economy since the US and other countries lifted economic sanctions.

Another French manufacturer, the maker of Peugeot and Citroen cars, announced a plan last year to produce vehicles in Iran. Some Japanese parts makers have also expressed interest in investing in the country.