TEHRAN, Aug. 7 (Xinhua) -- Two Iranian companies signed a deal on Monday with French multinational automobile manufacturer Groupe Renault to produce 150,000 cars, the IRNA news agency reported.

The 778 million U.S. dollars deal follows the lifting of international sanctions after Iran's 2015 nuclear agreement with world powers.

The production will start in 2018. It's expected to create about 3,000 jobs for the two companies, Iran's IDRO and the privately owned Negin Group. Renault has a 60 percent partnership in the deal.

Last year, French carmaker PSA Peugeot Citroen reached a deal with Iran Khodro to open a plant producing 200,000 vehicles annually.

Iran produces about 1,350,000 vehicles a year, though authorities hope that number will reach 3 million annually by 2025.