Economy, Auto

Japanese Car Deals Underway

Japanese Car Deals UnderwayJapanese Car Deals Underway

Iran Khodro Company, the largest domestic car producer, has announced holding talks with an, as yet, unnamed Japanese car brand "other than Suzuki", according to a press release of the company.

Quoting the company's CEO, Hashem Yekezare, the local automotive website Persian Khodro noted that the IKCO intends to produce "A Class" vehicles inside Iran.

Yekezare added that the new car will match current market offerings in terms of price, but hesitated to elaborate further.

Discussions with the second Japanese producer follow talks with Suzuki to produce at least two models inside Iran Khodro's factories.

Japanese automaker Suzuki plans to launch and later assemble at least three new models for the Iranian market, hinting a significant shift in its sales outlook for Iran in the post-sanctions environment.

The two models include the sedan Ciaz for the middle-class market with a target price of 1-1.6 billion rials, according to the report.

Currently, Ciaz is only available in select markets, such as India, China and Thailand.

The other vehicle tagged for Iran is the Suzuki Swift that will be launched initially with three engine sizes, including 1.2, 1.4 and 1.6 liters. The vehicle price is expected to be in the range of 440-770 million rials, according to the website.

Last summer, Iran Khodro said it was moving ahead with plans to team up with the Japanese automaker. IKCO had agreed with Tokyo to begin an internal study to prepare the groundwork for cooperation.  

The CEO also informed the press that his company has stopped negotiations with Renault, saying that these will resume at a later date. Renault also has contracts with other Iranian car companies like Pars Khodro and SAIPA.