Economy, Auto

Pars Khodro in Talks to Resume Qashqai

Qashqai is named after the Iranian Bedouins of the same name.Qashqai is named after the Iranian Bedouins of the same name.

Pars Khodro announced that it in talks to resume the production of Nissan’s Qashqai inside Iran.

In a ceremony held on the occasion of unveiling Sandero Stepway in Tehran on September 6, CEO of Pars Khodro Nasser Aqa-Mohammadi said Pars Khodro is negotiating with the Japanese multinational automobile manufacturer to revive their former collaboration, IRNA reported.

Qashqai, named after the Iranian Bedouins of the same name, originally started production with Pars Khodro back in the mid-2000s, although production of the car stopped in 2009, reported.

“The production of the model was stopped due to the imposition of US-led sanctions against Iran,” he said.

According to the official, the company is also negotiating with the Paris-based company, Renault, for additional models to enter the local market.

Aqa-Mohammadi announced that last month Pars Khodro produced 830 units and intends to boost its sales rate by 250% this year.

He added that all the negotiations of Pars Khodro with foreign companies have been in line with the policies of Iran’s Ministry of Industries, Mining and Trade.

The ministry previously demanded that any deal signed with foreign auto manufacturers should observe two guidelines.

Firstly, 30% of vehicles produced under the joint ventures should be exported through the foreign company’s sales networks.

Secondly, at least 20% of the required technology should be indigenized in the first phase of production.

The new development follows SAIPA’s memorandum of understanding with Citroen (PSA Group) and Iran Khodro’s (IKCO) deal with Renault.

Iran’s automotive sector is in a state of flux currently, with new cars slowly entering the market and the range of vehicles available today expanding.

With the nuclear deal signed and the sanctions lifted, Iran is seeing renewed interest in its automotive sector from foreign investors and auto manufacturers who view Iran as a lucrative market.