Iran Khodro negotiating with six-non Chinese automakers

Iran Khodro negotiating with six-non Chinese automakers

Tehran, July 20, IRNA – Iran Khodro Managing Director Hashem Yekke-Zare said here on Wednesday that the company is negotiating with six non-Chinese auto companies

Talking to IRNA, Yekke-Zare underscored that some 30 percent of Iran's leading vehicle manufacturer Iran Khodro and the French carmaker Peugeot-Citroen (PSA) joint venture company named 'IKAP' is set to be exported in near future.

He added the French carmaker PSA Peugeot Citroen has signed a final agreement with Iran Khodro to form a joint venture to produce vehicles in Iran.

Yekke-Zare underscored that the agreement is 50/50 joint venture.

On June 21, IKAP joint venture kicked off its work in Tehran in presence of Minister of Industry, Mine and Trade Mohammad Reza Nematzadeh.

The news comes after Peugeot-Citroen signed a €400 million ($450mn) joint venture with Iran Khodro.

The new venture aims to produce 200,000 vehicles a year by 2018.

Following the contract between Iran Khodro and Peugeot, other Iranian automakers such as Saipa pursued their talks with French, German, Japanese and South Korean companies.

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