An agreement have been signed between Iran Khodro Company (IKCO) and Saipa Group, the two major Iranian carmakers, for joint production of a budget car.
The agreement was signed by the managing generals of the two companies on the sidelines of an Iranian auto industry in Tehran on Saturday.
The signing of the agreement occurs in line with fulfillment of one of President Raeisi’s decrees which calls for the launch of at least one home-made budget car model as part of his strategies to reform the domestic car manufacturing sector in Iran.
Deputy industries minister Manuchehr Manteghi said early in April that the Iranian-made budget car will be unveiled in early 2023 and is expected to hit the markets in the summer of 2024.
Manteghi said that initial works on the new car model have been carried out as part of a joint project between the ministry of industries and major automotive companies in Iran.
He said the government will be serious about the project and will provide the required financial support to make it successful.
The official noted that the model could be even cheaper than international rivals that normally cost between $5,400 and $5,800.