Tehran, Iran, October 5
By Mehdi Sepahvand - Trend:
New vehicles that Iran-Khodro is going to make in cooperation with PSA (Peugeot) will have Euro-6 engines, said Iran-Khodro CEO Hashem Zare Yekta.
The joint venture between Iran-Khodro and Peugeot (named IKAP) officially started to operate in September. The first products will go to the market in March.
Zare said Iran will provide 40 percent of the parts used in the cars upon production onset, and will increase the share to 70 percent in three years, ISNA news agency reported October 5.
Right now 60 part makers are working with Iran-Khodro to produce parts for IKAP, he added.
Noting that Iran is surrounded by a market of 500 million population, Zare said the Euro-6 standard will enable Iran-Khodro to export the cars.
This year Iran-Khodro and PSA embarked on a new round of cooperation after years of separation under sanctions.
The two companies in January signed an agreement to launch the joint venture, followed by 17 subsidiary agreements in the cooperation protocol between the two sides.