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PSA Peugeot Citroën to create a joint venture in Iran with Iran Khodro

PSA Peugeot Citroën, which has operated in Iran for more than 30 years, and Iran Khodro signed a joint venture agreement to produce latest-generation vehicles in Iran. This 50/50 joint venture lays the foundations for a strategic partnership between the two companies.

This joint venture is expected to invest up to €400 million (US$437 million) over the next five years in manufacturing and R&D capacity. This investment will contribute to facilitate the development of a competitive manufacturing base for producing, launching and marketing Peugeot 208, 2008 and 301 models, fitted with latest-generation engines.

The agreement provides for:

  • The restoration of contractual relations concerning the manufacture of Peugeot-branded vehicles currently produced in Iran.

  • The creation of a joint venture on an industrial site in Tehran to produce new latest-generation Peugeot vehicles, on a platform that will also be used by Iran Khodro to develop its own vehicles.

  • The capacity to export JV products across the region.

Coming one week after international sanctions were lifted, this agreement marks the beginning of a new chapter for both partners. The agreement, which will be backed up by technology transfers and significant levels of local content, will come into effect once it is implemented, i.e., around mid-2016.

The first vehicles will roll off the production line at the Tehran plant in the second half of 2017.

The Iranian market reached a peak of 1.6 million vehicles in 2011. It should regain this level within 2 years to reach 2 million vehicles a year by 2022. Current estimates put the number of Peugeot cars on the road in Iran at more than 4 million.

Iran is a key component of PSA development strategy in the Middle East & Africa region, which is PSA Peugeot Citroën’s third-fastest growing international market. The Group sold 180,200 vehicles in the region in 2015, up 6.4%.

In turn, Iran Khodro plan to capitalize on the technology transfer.

Separately, Renault also reaffirmed its ambitions in Iran. Groupe Renault has been active in Iran since 2003, producing close to 500,000 vehicles through its Renault Pars joint venture with Saipa and Iran Khodro.

Following the launches of the Logan Pick-up and the Sandero in 2015, Renault and its Iranian partners are stepping up their cooperation and preparing the introduction of other models.

Renault said that as soon as smooth relations have resumed between French and Iranian banks following the lifting of the sanctions, Renault will considerably intensify operations in Iran and prepare future model releases in association with its two local partners.



Too bad that 86% of the (Sunnite) Islam World will not buy vehicles made by (Chiite) Islam world.

Iran may have to export to the non-Islam countries?


I don't think religious wars extend to the real world needs.
If the product is good consumers will buy.
AK47's are used by US backed fighters the world over.
This B.E.V. advocate and fossil fuel critic prefers a 5klm/liter 'mcycle' to a push bike and a salad sandwich.(on occasion)

Peugeot have a very long history of supplying kit form vehicles into the middle east and other areas of the world.
That has historically helped them establish their excellent reputation.
If they are suppling the latest engine generations we will all benefit from reduced carbon footprint.

Where else (left) in the middle east is there any capacity to produce socially useful products?

Each Pug exported an displace almost two Toyota Highlux with machine gun.

R.E. and supercharged BEV's will take a little while to fully replace ICE, but as for mobile phone technology, developing economies are in many ways better placed for it's introduction as dispersed infrastructure is required first.
The tangle comes later.



Each Pug exported an displace almost two Toyota Highlux with machine gun. Should be: Every two pugs will displace one Toyota.

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