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Iran launches production of two new cars

03 May 2017 [14:22] - TODAY.AZ

By Azernews

By Kamila Aliyeva

Iran Khodro, the leading Iranian car manufacturer, has started production of two new cars - Dena Plus and Peugeot 2008, IRNA reported.

Dena Plus is a fully Iranian car, while Peugeot 2008 will be produced jointly with France.

Iranian President Hassan Rouhani, who attended the opening ceremony, said that the production of new models of cars will help the Iranian automaker enter the world market.

The head of state said that 30 percent of Iran Peugeot 2008 car models will be exported.

Rouhani voiced belief that the development of domestic production will contribute to advancement of the country's economy, solve problem of unemployment and allow Iran to switch to self-sufficiency.

In 2016, Iran produced about 233,000 Peugeot cars under the license of the French automaker.

Iran's car output reached 1.165 million units in 2016, according to the OICA. The figure indicated an 18.6-percent rise versus 2015, which is the highest output growth rate among car manufacturers in the world.

The Islamic Republic was the world's 18th biggest car manufacturer in 2016. Iran’s car industry is the second biggest sector in country after the energy sector, which makes more than 10 percent of GDP.

Following the JCPOA, Iranian car manufacturers reestablished cooperation with European companies, including Peugeot, Citroen and Renault. This resulted in a strong growth of nearly 151 percent for automotive sector, which ended 2016 as the top performing sector on the Tehran Stock Exchange.

Traditional export markets for Iranian automobiles include Algeria, Azerbaijan, Cameroon, Ghana, Egypt, Iraq, Pakistan, Senegal, Syria, Sudan and Venezuela.

Under Iran's major economic development plan, the country has set a goal to boost car output to three million per year by 2025, reducing unnecessary car imports. Central geographic location of the country provides significant growth potential as an export hub.


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