Iran Khodro (IKCO) will begin to export vehicles to Algeria following the signing of a memorandum of understanding (MoU). IKCO deputy CEO for export, Saeed Tafazzoli said the MoU included exports of 15,000 vehicles and setting up local production.

Exports should have started by the end of 2016, he said. From the beginning of 2017, Algeria will ban imports of vehicles assembled outside the country.

"As a result, IKCO [will] supply Algeria with vehicles assembled [there. To this end, we have three options: First and foremost, moving our production line in Senegal to Algeria, moving the Bardo [a previous model pickup truck] production line to Algeria and finally establishing a new production line in the country," Tafazzoli said.

Speaking at a joint press conference with IKCO's dealership chief in Algeria, he said IKCO's new production line would be established in a region about 300km (200 miles) from the capital Algiers with capacity to assemble 30,000 CKD vehicles a year.