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Saipa-Groupe PSA JV to Assemble Five Models in Iran 20-May-2016 10:25 GMT News Strategic Partnerships

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Saipa-Groupe PSA JV to Assemble Five Models in Iran 20-May-2016 10:25 GMT News Strategic Partnerships Saipa-Groupe PSA JV to assemble five models in Iran 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 joint venture (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 Middle East and Africa (MEA), which is the third largest region by volume for the automaker after Europe and China, 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 Iran Khodro 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 automotive industry. 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. The information contained in this presentation is confidential. Any unauthorized use, disclosure, reproduction, or dissemination, in full or in part, in any media or by any means, without the prior written permission of IHS Markit or any of its affiliates ("IHS Markit") is strictly prohibited. IHS Markit owns all IHS Markit logos and trade names contained in this report that are subject to license. Opinions, statements, estimates, and projections in this report (including other media) are solely those of the individual author(s) at the time of writing and do not necessarily reflect the opinions of IHS Markit. Neither IHS Markit nor the author(s) has any obligation to update this report in the event that any content, opinion, statement, estimate, or projection (collectively, "information") changes or subsequently becomes inaccurate. IHS Markit makes no warranty, expressed or implied, as to the accuracy, completeness, or timeliness of any information in this report, and shall not in any way be liable to any recipient for any inaccuracies or omissions. Without limiting the foregoing, IHS Markit shall have no liability whatsoever to any recipient, whether in contract, in tort (including negligence), under warranty, under statute or otherwise, in respect of any loss or damage suffered by any recipient as a result of or in connection with any information provided, or any course of action determined, by it or any third party, whether or not based on any information provided. The inclusion of a link to an external website by IHS Markit should not be understood to be an endorsement of that website or the site's owners (or their products/services). IHS Markit is not responsible for either the content or output of external websites. Copyright © 2021, IHS Markit®. All rights reserved and all intellectual property rights are retained by IHS Markit..
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