Trilateral Deal to Establish Vehicle Design Company

Trilateral Deal to Establish Vehicle Design Company
Trilateral Deal to Establish Vehicle Design Company

Iran Khodro, Iran's largest automaker, signed a trilateral agreement with two companies, Iranian Tisser and Italy's BDI, on Saturday for establishing a vehicle design company.

According to IRNA, the measure has been taken to develop new products and boost the value chain of the local automotive industry.

Iranian automakers have so far played a minor role in vehicle design that has usually been carried out by foreign companies. Despite the fact that IKCO will be overseeing the managerial aspects, the company will be mainly run by the private sector.

Sub-par vehicle designs have always been a weak point in the Iranian car manufacturing industry, the company admits. With the establishment of this new company, designers, experts and engineers active in the auto industry will have the opportunity to share creative ideas with international elites.

Programs will include designing vehicle body and parts, engineering and car modeling. Enthusiasts will undergo educational courses to create new models locally.  

The project is expected to fill the gap of original design in the country's vehicle manufacturing industry. It also aims to institutionalize the knowledge needed for producing original vehicle designs.

The announcement comes as Iran Khodro announced last week it intends to start selling Chinese branded vehicles as their own, technically defeating the whole purpose of its own research and development.  

Iran Khodro has traditionally teamed up with foreign companies to design their vehicles. The Samand sedan designed over a decade ago, which is still on sale, was originally designed jointly with an Irish design company.

Saipa, IKCO's main competitor, also teamed up with foreign companies to get their internally designed vehicles to market faster. The Saipa Tiba hatchback version was designed by an Italian company in 2013, thus increasing the car's market share and broadening its appeal with the younger clientele.