(Persia Digest) – After the French Peugeot car company cut all ties with Iran due to unilateral US sanctions, Iran’s state owned automotive company will begin a pilot project tomorrow to produce the Peugeot 301 model.

According to Adel Pir-Mohammadi, Deputy of Research and engineering at Iran Khodro Company, after the failure of the French company to live up to its commitments and leaving the Iranian market, self-sufficiency in the production of Peugeot 301 model and continuation of work was placed on the agenda; work on the pilot project will begin tomorrow.

He added: “Currently, 60 percent of the parts are made in Iran. This figure will reach 80 percent by the year-end. At this level of domestic production, manufacture will officially begin next year when the car will also be marketed.”


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Pir-Mohammadi said: “Forecasts for the three months of March, April, and May 2020 is ten thousand cars. Although, the initial capacity for the first stage of production is 100 thousand cars, reaching 170 thousand in the next stage.”

Deputy of Research and engineering at Iran Khodro added: “Although the sanctions hurt Iran’s automotive industry and were intended to impact 25 other related industries such as oil, copper, and aluminium, but this was prevented and we were able to start new projects of which the Iranian Peugeot 301 is one. This will be followed by other car models made in Iran, gradually to be unveiled and marketed.

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