Iran Khodro (IKCO) is convening a board meeting next week to discuss when it should begin mass production of its Runna family of cars.

"Javad Najmeddin (IKCO CEO) [said] we would have some announcements about Runna production - the board will have some sessions next week to talk about mass production of the project," an IKCO spokesman in Tehran told just-auto.

"The first phase will be around 5,000 [units] in three months," he added although no further details on the model were available.

IKCO is also working in collaboration with Peugeot to expand its production with the French automaker, although the spokesman noted the discussions were "confidential."

The Iranian manufacturer noted its domestic market was close to saturation and to that end was examining overseas regions as a means to expand and reach a 7% share of total sales abroad.

IKCO particularly targets fellow Islamic countries for export such as Iraq, Syria and Turkey and has also mooted the possibility of manufacturing a vehicle cooperating with other Islamic producers.

The company currently has plants in Egypt, Syria, Senegal, Venezuela, Belarus and Azerbaijan.

The IKCO spokesman also revealed the recent 18% stake sale to the Tehran Stock Exchange had yielded US$430m.

The disposal of the 18% from IDRO - Iran Industries Development and Renovation Organisation - means the government now owns 20% of IKCO.