Iran unveils local version of Peugeot 207

The Peugeot 207i, a locally built version of the French automaker's 207, was unveiled in a ceremony in Tehran on Saturday.

"Production of the new car comes as part of the government's policies to implement the targeted subsidies system," Iran's Minister of Industries and Mines Ali-Akbar Mehrabian said.

Iran will scrap subsidies on energy products by implementing the targeted subsidies system, which would make fuel items like petrol costlier and therefore increase demand for fuel-efficient cars.

He noted that about 50 percent of the new car's parts are produced in Iran but this will increase to 90 percent.

Bardia Fardad, the manager of the Peugeot 207i project, said that the production of the hatchback version of the car would begin at the beginning of the next Iranian year, which starts on March 21.

IKCO president and CEO, Javad Najmeddin, has announced that the number of 207i cars produced next year will hit 20,000.

The price of the new car will be between $15,500 and $19,000, Najmeddin added.

/Press TV/