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China set to fill vacuum left by French carmakers exiting Iran

The exit of French automakers from Iran is leaving a vacuum that appears set to be filled by Chinese auto manufacturers.
A picture taken on January 14, 2017 shows street traffic in the Iranian capital Tehran on the first anniversary of the nuclear agreement.
The first anniversary, of the nuclear deal between Iran and six powers, that lifted a large part of international sanctions on Iran in return for limits on Tehran's nuclear programme, comes four days before the inauguration of Republican president Trump on January 20. / AFP / ATTA KENARE        (Photo credit should read ATTA KENARE/AFP/Getty Images)

As Iran’s auto industry is grappling with a multifaceted crisis, there are signs that China’s nascent carmakers may step in to become part of the solution.

The US withdrawal from the Joint Comprehensive Plan of Action (JCPOA) and the impending reimposition of sanctions have not only caused a currency crisis in Iran but also led French automakers such as Peugeot and Renault to leave the Iranian market, creating a shortage of parts.

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