Iran Khodro Industrial Group (IKCO) has announced that it has started mass assembly of the Haima S7 sport utility vehicle (SUV). Iran Khodro Khorasan Company (IKKCO) – an IKCO subsidiary – houses the assembly line for the S7. The automaker said that assembly operations at the line started in June. The S7 is powered by a 2.0-litre engine that produces maximum power of 150 hp. The engine is offered with manual and automatic transmission. IKCO plans to assemble more than 20,000 units of the vehicle every year and 40% of its spare parts and systems inside Iran.
Significance: The design of the S7 comes from Haima Automobile Company, a Chinese car manufacturer. The move is part of Iran Khodro's plans to expand its local production. In July, IKCO revealed that it was in talks with four global automakers over local production plans. CEO Hashem Yekeh-Zareh said, "Iran Khodro has resumed co-operation with Renault. Ties will also be expanded with Japanese automaker Suzuki. Also talks with a German automaker have already reached [the] final stage."
