Two agreements have been signed in Tehran between Peugeot and Iran Khodro.

The first concerns a new 206 design to be introduced in the Peugeot range within the next two years.

The car, specifically developed by a joint engineering effort of the two parties is, they claim, going to be the most important export programme in Iranian automotive industry history.

The car, designed as a medium-size family model, is expected to be very successful in the domestic and in the target export markets. For the first time, some Eastern European countries are also listed as export targets.

The model is most likely a sedan version of the 206 as all other variants – 3 and 5-door hatchbacks, a wagon and a coupe-cabriolet – are already developed and in production in France, the UK, Spain and South America.

Some developing markets regard sedans as more prestigious; hence the development of sedan versions of Ford’s old-shape Fiesta (the Ikon), Renault ’s Clio and GM Europe’s old-shape Corsa for sale in South America, Mexico, India and China. Renault’s new ‘emerging market’ car, the Logan, is also a sedan.

The second PSA-Iran Khodro agreement concerns the introduction of the Peugeot 307 to Iran within 2-3 years. Exports are also planned and Iran market cars will have high equipment levels.