Report – PSA ready to reclaim Iranian auto market image

According to a recent report coming from Germany’s Manager Magazin, the French automaker PSA Peugeot Citroen is getting ready to reclaim the lost market share in the Iranian Republic, if sanctions against it are being axed.

The second largest automaker in Europe is reportedly preparing to reenter the Iranian auto market and compete with local producer Iran Khodro if the sanctions against the country are lifted, with the German publication Manager Magazin citing Peugeot brand boss Maxime Picat as saying the company would also consider forming a local joint venture company. “We are speaking to our Iranian partners on a weekly basis about how and when we can start our activities,” was quoted Picat as saying for the publication. “We are thinking about launching a joint venture with Khodro with which we could cover the whole spectrum from procurement to manufacturing and the sale of spare parts,” added the executive. Both Iran and global discussion partners managed to achieve a framework deal in April that would alleviate tensions between the country and world powers on the former’s nuclear program. That could lead to an end to the 12 years of standoff that was seasoned with brinkmanship, confrontations and threats.

Picat added for the German publication Manager Magazin the idea behind the agreement was to make it official sometimes in June, with sanctions soon lifted – allowing European carmakers to reenter the market, seen as one of the last auspicious emerging markets in the region. PSA had sales of around 400,000 units for the Peugeot brand alone in Iran.

Via Automotive News Europe