Beijing's BAIC car conglomerate has announced plans to produce around 100,000 vehicles through a new Iranian venture, the company announced on April 14.
BAIC, which has grown its share of the Iranian market over the last five years, hopes to build on its previous growth with a new production plant in the country–currently unnamed local partner and location, Bloomberg reports.
Diar Khodro, the current local partner of the Chinese car company, has produced the company's vehicles for the past few years. These models include the small Sabrina hatchback, now sold in both gasoline and hybrid variants.
A source in the local automotive industry has suggested several companies wished to team up with the Chinese auto group but Diar Khodro has the contract. This has yet to be confirmed by the Iranian partner.
The Iranian partner also produces the newly released Great Wall Haval SUV H4 and larger H6 models, which have had good reviews by the company.
The Chinese car company is likely ramping up its presence to fend off encroaching European and East Asian manufacturers like Peugeot, Fiat, Hyundai and Suzuki. All have publicly stated that they plan to push further sales and production in the Iranian market.
BAIC has also recently announced plans to push further into the luxury markets, usually the preserve companies like Mercedes, which produces its cars with the Chinese company in the billion-person market, according to Barron's magazine.
Financial Tribune contacted the company's main PR section in Beijing, but has yet heard nothing in response to the original Bloomberg article.
