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Iran’s biggest car producer Iran-Khodro and France’s ASP holding that covers Peugeot and Citroen signed a contract to launch a joint company in Iran to produce Peugeot cars.

The signing ceremony was held on June 21 at the Ministry of Industry with participation of Minister Mohammad Reza Nematzadeh, as well as Iran-Khodro CEO Hashem Yekkeh Zare and PSA’s Middle East and Africa Executive Vice President Jean-Christophe Quémard, who signed the contract, Trend's correspondent reported from the event.

Zare, addressing the event, said the production halls for the factory are being prepared so that the machinery may be installed and production begin by March 2017.

“Through this joint venture, we will gain access to new technology, high quality, and suitable prices. Besides, we will be exporting 30 percent of the output,” he stated.

Iran’s share of the parts that will be used will start at 40 percent, to grow to 70 or 80 percent in two years, he added.

“We will start the production with Peugeot 2008 and then move on to models 301 and 208,” he said.

Quémard, for his part, said the amount of the joint investment for launching the company for a 5-year run is €400 million, with sides bringing in 50 percent each.

Nematzadeh also congratulated the sides on the cooperation.

“I would like to congratulate the two parties for their new cooperation. Now should begin the real, physical work, not with three shifts a day, but with nonstop work,” he said.

“The cooperation was made possible through one memorandum of understanding and 19 related contracts,” the minister said.

The MoU was signed in January while President Hassan Rouhani visited France. Iran-Khodro and Peugeot’s cooperation dates back many years, so much so that currently Peugeot cars are among the most common ones on the streets of Iran.

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