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PSA Group and SAIPA, Citroen’s partner in Iran since 1966, recently signed a joint venture agreement to produce and sell Citroen vehicles in Iran.
The JV lays the foundations for a strategic partnership between the two companies. It will cover the entire value chain, from the design stage right through to vehicle marketing, including purchasing.
Manufacturing will take place at the Kashan plant in Iran, which will be 500 per cent owned by PSA Group. This industrial site is the most modern of Iran with a flexible industrial process at the highest level of environmental standards.
The JV will invest more than €300 million in manufacturing and R&D capacity over the next five years. The agreement will be backed up by technology transfers and a significant level of local content.
Consistent with the core model strategy deployed in the Push to Pass plan, the production in Kashan of three vehicles adapted to the heart of Iranian market will start in 2018. From early 2017, imported vehicles will be staging Citroen’s comeback in the country.
Citroen models will be sold throughout the country via a network dedicated exclusively to the brand. No less than 150 Citroen outlets will open in the next five years.
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