China's Chery to enter Iranian cheap cars' market

Iranian car producer, Iran Khodro and China's Chery have reached agreement on producing Chery cars in Iran.

This decision was mostly taken due to the absence of this manufacturer's main cheap model, the Peykan, and Saipa taking over Iran's market of cheap cars with its Pride model which last year had a production figure of approximately 400 thousand cars.

Currently some of Chery's models are being tested in Iran and in the case a model is selected both producers have agreed to start the first phase of production as SKD and then move on towards full internal production.

Of course Iran Khodro which is looking for a replacement so to fill the empty place of Peykan in the Iranian market is also one side of the new joint venture launched between this company and China's Chery.

The Chinese side is also to inaugurate the production line of Iran Khodro's current popular model, the Samand in autumn, which in the first phase has the capacity to produce 30 thousand vehicles annually.