Shares of Ituran Location and Control Ltd (ITRN) surged 5.00% in Monday's trading session following the announcement of a significant new contract with French automaker Renault. The company, known for its vehicle telematics and tracking solutions, has signed an initial three-year service agreement that covers multiple countries in Latin America.

The deal marks a major expansion for Ituran into the Original Equipment Manufacturer (OEM) market. According to the company's statement, the contract with Renault not only secures its presence in Latin America but also holds the potential for global expansion and extended service periods. This strategic partnership is expected to boost Ituran's market presence and revenue streams in the coming years.

Investors appear to be reacting positively to the news, seeing it as a strong indicator of Ituran's growth prospects. The agreement with a major European automaker like Renault validates Ituran's technology and service offerings in the competitive vehicle telematics market. As the automotive industry continues to embrace advanced tracking and connectivity solutions, Ituran's new deal positions it favorably for future growth and potential partnerships with other global automakers.