China's Chongqing Chang'an Automobile Co (CHANA) has reportedly reached an agreement with Iran-based PIDF (Pars Industrial Development Foundation) on manufacturing CKD cars in Iran.

Asia Pulse reported that according to the agreement, CHANA will assist PIDF to install a Benben car assembly line and provide full-scale technical support and parts supply. PIDF will pay for the technologies and commission.

The project is expected to go into production in the first half of 2009 to produce 50,000 units annually at the primary stage, and lift its annual production capacity up to 250,000 units in four years. The report said CHANA will gain a profit from each car equaling to 3-4% of the sales price at the primary stage.

The report added that Xu Liuping, president of CHANA's parent company, said Iran's auto market has seen continuous growth in recent years, with sales exceeding one million units in 2006.