23 Jun 2024
Tuesday 10 March 2015 - 22:56
Story Code : 154882

France's Peugeot agrees to resume work in Iran

[caption id="attachment_50053" align="alignright" width="240"] Iran Khodro Industrial Group (IKCO) CEO and President, Hashem Yekeh-Zareh Iran Khodro Industrial Group (IKCO) CEO and President, Hashem Yekeh-Zareh[/caption]

French automaker PSA Peugeot-Citroen has reached agreement with Irans leading carmaker Iran Khodro for the establishment of a factory in Iran, Iran Khodros CEO says.

Peugeot will set up a joint factory with Iran Khodro, held 50% by Peugeot and 50% by Iran Khodro, Mehr news agency quotedHashem Yekkeh-Zareas saying.

He said that the planned joint factory would export 30% of its manufactured vehicles.

The official also said Iran Khodro would no longer assemble cars in Iran.

Yekkeh-Zare said Iran Khodro is making efforts to take control of domestically manufactured cars from Chinese car producers, warning that the Chinese are seizing Irans car market.

He noted that Iran Khodro is looking for replacement of Chinese products with products of higher technical quality.

He said the Iranian company is also in talks with Japans Suzuki and another European manufacturer.

Soon, we will also reach agreement with a qualified European company, but based on these agreements, we will not give them totally our market, said Yekkeh-Zare.

He said Iran Khodros car manufacturing for the current calendar year to March 20 would reach 690,000, much higher than 530,000 envisaged by Irans Ministry of Industry, Mine and Trade.

Yekkeh-Zare said Iran Khodro plans to manufacture 3 million cars a year in 2025 to get a 60% share in Irans car market.

Iran Khodro is the biggest vehicle manufacturer in the Middle East, Central Asia and North Africa with the current production capacity of 600,000 vehicles a year. The company produces a variety of vehicles, including Samand, Peugeot and Renault cars, and trucks, minibuses and buses.

Peugeot is one of Iran Khodros oldest partners and several key vehicles jointly produced by the two including Peugeot 405, Peugeot 206, and Peugeot 207 - are supplied to markets such as Azerbaijan, Iraq, Armenia, Uzbekistan, Turkmenistan, Syria and Afghanistan as well as the domestic market.

In February 2012, PSA Peugeot Citron stopped its trade with Iran when the sanctions against the Islamic Republic were extended to the automobile sector. It also halted its exports of vehicles to Iran, which accounted for around 13 percent of the firms global deliveries in 2011. It cost the automaker an annual loss of half a million car sales and an estimated 1.5 billion euros in lost revenue in 2013.

By Press TV
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