French car maker PSA Peugeot Citroen Group and Saipa, Citroën's historic partner in Iran since 1966, have finalised a joint-venture agreement to produce and sell Citroën vehicles in Iran. This 50/50 joint-venture will cover the entire value chain, from the design stage right through to vehicle marketing, including purchasing, Kallanish learns from PSA.

Manufacturing will take place at the Kashan plant in Iran, which will be 50% owned by PSA Group. The joint-venture will invest more than €300 million ($332m) in manufacturing and R&D capacity over the next five years. In Kashan the production of three vehicles adapted to the Iranian market will start in 2018. “From early 2017, imported vehicles will be staging Citroën’s comeback in the country,” PSA says in a note.

150 Citroën outlets will also open over the next 5 years. The PSA Iran come back is part of the ‘Push to Pass’ global growth strategy planned plan announced by the company earlier this year, Kallanish notes.