Iran Khodro is set to launch mass production of Peugeot 301 in the coming months as part of a joint venture agreement with PSA Group’s Peugeot brand.
The €400-million joint venture, which is called Iran Khodro Automobiles Peugeot (IKAP), was formed in June 2016 and each side has a 50% stake in it, IKCO Press reported.
IKAP CEO Mohammad Reza Motamed says prototypes manufactured in Iran will be tested by top-notch European firms. After earning the green light from the foreign quality inspectors, the production will go into full swing.
Officials with the joint venture have announced plans to ramp up production of Peugeot 2008 in the coming months. The model is the fruit of IKCO’s first joint product with the French company and Peugeot 301 is the second. The trial production of Peugeot 301 has begun.
Motamed says the share of locally manufactured parts in 301’s production will be increased over time and reach the target of 50%.
After inauguration of IKAP production lines in Tehran in March 2017, the company manufactured 1,971 Peugeot 2008 in the 11 months to Feb. 19. The vehicle is priced at 1.3 billion rials ($31,000). Peugeot 301 is priced at one billion rials ($23,800).
