Turkey's Otokar Signs Deal With Iran's Oghab Bus Company

Turkey's Otokar Otomotiv ve Savunma Sanayi A., otherwise known as Otokar, has signed a deal with Iran's Oghab Afshan Industrial and Manufacturing Company for the sale of its Navigo buses in complete-knock-down (CKD) format.

The value of the deal is estimated at 50 million Turkish lira ($14.2 million), according to Turkish media.

"The contract is valid for 3 years and there is a 2 year extension option," the Milleyet newspaper quoted an Otokar representative as saying on Monday.  

The initial three year deal will see Oghab buy 500 vehicles with an option to extend the contract later.

OTOKAR will also receive royalty payments of $523,000 for production of parts made in Iran, the Turkish report said.

Iranian regulation stipulates that foreign companies produce vehicles in Iran, a proportion of those parts must be produced under the original company's license to support local industrial development.

The deal would allow Oghab to assemble the 33-seat  vehicle at its Iranian base in the province of Semnan, after it halted production of its other smaller buses in recent months.

Bus Details

Powered by the Cummins 4 cylinder ISB 4.5 euro 6 engine coupled to an  Allison 2200 5 speed auto gearbox the model offers up to 37 seats plus courier with under 4 cubic meters of luggage capacity.

The vehicle also has Konvecta air conditioning and double glazing is standard along with a comprehensive entertainment and navigation system.

Full length parcel racks with individual service units and 'Sege Coach Seating' make for within the 8.4 meters long and 2.3 meters wide body.

The Navigo was first unveiled in the Turkish market in 2007 and has subsequently gone on sale in several markets in Europe.

The Turkish firm produces a range of minibuses, trailers and Land Rover models under license. The company also produces military vehicles for the Turkish armed forces.

Otokar began business in 1963 as Turkey's first intercity bus manufacturing company under license from German firms.