First FDI made in Iran’s auto industry

EghtesadOnline: Iran Khodro Industrial Group and French Peugeot Company have already offered for sales their shares in the joint venture company named IKAP as the first Foreign Direct Investment (FDI) officially made in Iran’s auto industry.

News ID: ۷۳۵۳۳۵

25 July 2016

Opening IKAP’s share market in Tehran Stock Exchange, IKCO’s CEO Hashem Yekeh-Zareh said IKCO and Peugeot have offered for sale their shares in IKAP. Addressing the reporters, he also noted that the two companies have established a joint venture in their new round of cooperation with each investing nearly 14.9 million dollars over the past few days.

“After the nuclear deal between Iran and P5+1 group of countries, we have put considerable efforts to develop our relations with international companies. And IKAP has been established to this end,” he added.

Yekehzare also said as announced earlier, Peugeot won’t be IKCO’s sole foreign partner as IKCO is now involved in talks with Mercedes Benz as well as a number of foreign leading companies with high technology for further cooperation, according to ISNA.

He emphasized that IKCO and Peugeot are seriously pressing ahead with their joint projects within IKAP adding, the next step is official registration of IKAP which would become finalized in the upcoming days.

Yekehzare also referred to a new IKCO product saying the company is set to release Peugeot 207 Sedan in the winter. He noted that the new product will be built based on the Iranian experts’ know-how.