Economy, Auto

Iran's IKCO to Sell 28 Subsidiary Companies by March 2017

Iran's IKCO to Sell 28 Subsidiary Companies by March 2017  Iran's IKCO to Sell 28 Subsidiary Companies by March 2017

Iran’s largest carmaker Iran Khodro Company (IKCO) is planning to sell 28 of its subsidiary companies by the end of the current Iranian year (March 20, 2017), the company’s CEO said on July 20.

The day marked the 21st anniversary of IKCO’s initial public offering where IKCO’s CEO Hashem Yekezare said a number of customers have announced that they are willing to purchase the subsidiaries, IRNA reported.

He added that IKCO will be releasing two new models, namely a new version of Dena (already leaked) and a Peugeot 207 (i+) expected to be reintroduced with both hatchback and sedan models, which will be sold at around 500 million rials ($14,300).

Peugeot 2008, earmarked for local production, is also likely to be one of the few models entering the domestic market by the yearend.

Yekezare noted that auto production in the first quarter of the current Iranian year (started March 20) increased by 40% and 7% compared to the same period of last year and the year before that, respectively.

The CEO reiterated that “IKCO’s cooperation is ongoing with foreign business partners, namely Peugeot and Suzuki”.

“The company has also started negotiating a deal with Japan’s Datsun with details to be finalized next year,” he said.

“IKCO’s deal with Mercedes Benz is in its final stages and will be finalized in two months. The two sides have already reached an agreement on production of commercial vehicles and passenger cars in Iran.”

Yekezare announced that the two companies will be setting up two joint companies: one for producing cars and the other for delivering sales and after-sales services.

IKCO will have a 51% share in the manufacturing company while Mercedes-Benz will have the 51% share in the sales division.   

Mercedes-Benz is a subsidiary of German-based Daimler that has announced a swift return to Iran where the race among carmakers for a share of the country’s huge market is getting intense.

In January, the German carmaker said it had signed letters of intent with local partners Iran Khodro Diesel and Mammut Group to arrange a “comprehensive reentry” into the country’s commercial vehicles market.

Areas of cooperation include a joint venture for local production of Mercedes-Benz trucks and power-train components plus the establishment of a sales company for the brand’s trucks and components.

Daimler has already started engine production at Iran Khodro Diesel’s Tabriz facility for heavy goods vehicle production in that region.