Economy, Auto

East Azarbaijan Province to Produce New Cars

East Azarbaijan Province to Produce New CarsEast Azarbaijan Province to Produce New Cars

Following the latest auto contracts signed, 2,000 jobs will be created in East Azarbaijan province, said a deputy of the province's Industries, Mining and Trade Organization.

According to Gholamali Rasti, Iran Khodro Company in East Azarbaijan and Shanghai Motors of China will be collaborating over a period of eight months to produce 10,000 vehicles in the province, Mehr News Agency reported. The official added that the deal for producing new MGs will be finalized if the conditions are met, namely incorporating local resources.

This specifically calls for collaboration with Iranian auto part manufacturers.

"Also, European auto manufacturing standards must be observed so that the cars can be sold in Iran and exported to the regional markets," he said on Tuesday in a meeting with local and foreign auto partners.

Rasti pointed to the facilities of the region, specifically highlighting Aras Free Zone as an ideal region for investment.

He projected that the province will eventually carry out the welding and paint works of the cars, which will help lower production cost.

Though models of the Chinese brand to be produced in East Azarbaijan have not been named, it is speculated that production will begin with the small family car MG 350.

Currently, local automotive firm Media Motors is the official retailer of MG in Iran. It imports and sells a collection of MG models, with MG 350 currently selling for approximately $25,000 in Iran.