Iranian vehicle production data sent exclusively to just-auto indicates that in the year from March 21 2001 through March 20 2002, the Iranian automotive sector continued to show robust growth. Overall vehicle output expanded by 27.6% to 379, 378 units in the period, led by rising output of passenger cars (which expanded by 29% to 321,181 units).


Iran Khodro was the biggest Iranian producer, with its Paykan and Peugeot models. The Tehran-based company added production of the Peugeot 206 to the Peugeot 405 in 2001.


Saipa, which makes a version of the Kia Pride, was the second largest producer.


In March, following two years of negotiations, the Pakistani company Divan Engine and Iran’s Saipa signed an agreement regarding the export of CKD kits/automobile parts, manufactured in Iran, for final assembly in Pakistan.


Iran has invested much of its oil revenues in building up the production of cars and automotive components, sheltered behind a complete ban on imports. Observers and analysts note that if the country is serious about developing exports it will have to revisit WTO membership conditions and open up to imports and foreign investment.

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A number of Iranian companies, including Iran Khodro, aspire to export vehicles to central Asian republics such as Turkmenistan, Tadjikistan and Azerbaijan, as well as North African and Middle Eastern states which are seen as largely ignored by Western makers.