PSA Group has signed an agreement with Iran Khodro to produce Peugeot models in Teheran
PSA Group has reached a deal with Iran Khodro to form a joint venture which will produce a new generation of Peugeot vehicles in Teheran, according to a communication by the French company.
The 50/50 joint venture will count on 500 million euros investment in the next five years for production department as well as Research and Development activities.
The French group pointed out that this investment will help to develop a competitive industrial base to produce, launch and commercialise Peugeot 208, 2008 and 301 models in Iran.
The vice president of the multinational company in the Middle East region and Africa, Jean- Christophe Quémard, affirmed that this deal represents a "crucial milestone" in the project with Iran Khodro. "I am proud of offering the best technology from the PSA Group to Iranian clients" he added.
Moreover, vehicles jointly produced could be exported to other countries across the region. First vehicles are expected to start the production in Teheran by the second half of the next year.
PSA Group pointed out that Iran represents a "key" component on its development strategy in Middle East and Africa, regions which are company's third-fastest growing international market.