Chery to hit Iranian roads by January 2009

An Iranian carmaker has struck a deal with Chery, the largest independent car company in China, to assemble 6,000 vehicles in 2009.

The announcement was made by Seyyed Hossein Ahmadi, head of the Industries and Mines Department of Khorasan Razavi province, at an auto fair in the capital city Mashhad.

Sanabad Khorasan Khodro, an affiliate of Iran Khodro -- the Middle East's largest carmaker -- will begin assembly of the vehicles in January 2009 in the northeastern Khorasan Razavi province, and will use Chinese technology.

The Iranian and Chinese companies have spent over one year negotiating the deal. Production will increase significantly in 2010 with 30,000 Chery cars planned for year two of the venture.

In 2007, China's biggest domestic automaker, Chery, announced it would open a factory in Iran. The manufacturer is expanding rapidly into foreign markets and has announced joint ventures with American-owned Chrysler, and Fiat -- an Italian car company. Chery also assembles vehicles with partners in Russia, Ukraine, Egypt, Uruguay and Indonesia.

The factory will assemble Chery's compact S21 sedan, also known as the QQ6, from kits supplied by Chery. The vehicles are to be sold in Iran and neighboring countries.