Russian automobile producer and van specialist GAZ has stated that it plans to supply 500 assembly kits of its Gazel van model to Iranian company Iran Khodro Diesel this year.

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GAZ started supplying the assembly kits to Iran in March and has supplied 120 kits so far.

The Iranian company plans to increase the assembly of Gazels to 10,000 a year by 2006. Analysts say that figure looks over ambitious given the level of demand in Iran and even allowing for some export shipments.

The Gazel kit supplies are being carried out under a five-year deal signed in 2001.

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