Saipa-Groupe PSA JV to assemble five models in 20-May-2016 10:25 GMT News Strategic Partnerships

To invest USD200 million

Iranian automaker Saipa and French carmaker Groupe PSA will sign a co-operative agreement next month to finalise their 50:50 (JV), reports the Trend News Agency, citing Saipa CEO Mehdi Jamali. The JV will have an investment of approximately USD200 million and will assemble a total of five Citroën models, including the Elysee and the SC35. The vehicles will be assembled at Saipa's Kashan plant in central Iran, with some exported to other regions.

Significance: In a previous report, Industrial Development and Renovation Organization of Iran (IDRO) managing director Mansour Moazami said that jointly manufactured products would be launched within the next 18-24 months. Iran is a key component of PSA's development strategy in the and Africa (MEA), which is the third largest region by volume for the automaker after Europe and , according to IHS Automotive data. This latest development is in line with PSA's long-term plans to sell more than 400,000 units in Iran per year. In October 2015, it launched its DS brand in Iran and it recently officially opened its first dealership in the country. PSA also signed a 50:50 JV agreement with Industrial Group (IKCO) in January for the production of vehicles in Iran. The new agreement is expected to bolster mutual co-operation in the Iranian . According to IHS Automotive, Saipa will begin assembling PSA vehicles at its Kashan plant from 2017. The Citroën C4 will be the first nameplate, with production volumes reaching 5,544 units in 2017 and 17,133 units in 2018.

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