Iran-Turkey joint buses to meet Euro 5 standards (exclusive)

By  Trend

Iranian Oghab Afshan vehicle maker is slated to supply Navigo buses, powered by Euro 5 engines, in the Islamic Republic, under a license agreement inked with Turkey’s Otokar.

Mahmoud Gholami, export manager of Oghab Afshan Industrial and Manufacturing Company, told Trend that Oghab will assemble the vehicles at its site in the northern city of Semnan.

Saying that Oghab is a private bus manufacturer in Iran and is the market leader in bus and coach segments in the country, he added that the new Oghab buses will have a capacity to carry 25 passengers.

Turkish sources earlier estimated that the deal on the sale of Navigo, known as Sultan in Turkey, is valued at about $14 million.

Otokar, which is a subsidiary of Turkey’s KOC Holding, has announced that the deal will take place in complete-knock-down (CKD) format.

Since last year’s historic nuclear deal between Iran and the world’s major powers, international bodies have observed a surge in interest among multinational companies in investing in the Islamic Republic’s largest non-oil sector, the automotive industry.

Iranian carmakers in total manufactured over 820,000 cars over a period of eight months between March and November, indicating a rise by 35.9 percent year-on-year.

According to the country’s economic development plan, Iranian carmakers are expected to produce three million cars per year by 2025.

Turkey ranks sixth in car production in Europe producing cars of such brands as Ford, FIAT, Renault, Toyota, Honda, Opel, Hyundai, Mercedes-Benz and MAN.