Iran Khodro Company (IKCO) plans to accelerate its vehicle assembly operations in Iraq to 3,000 vehicles per month and has entered into an agreement with its Syrian partner to restore their joint car-manufacturing site near Syria's capital Damascus, according to a company press release. The Syrian site is expected to start its operation soon by supplying various parts for 48 units of the Dena, 24 units of the Soren and 24 units of the Runna. The automaker will also export 500 vehicles including the Dena, Runna, Soren and Arisan to Lebanon, as per the recent memorandum of understanding (MoU) signed between Iran and Lebanon.
Significance: IKCO has a assembly line in Iskandariya (Iraq), where it currently produces the Runna, Samand, Soren, Peugeot Pars and Peugeot 405. The automaker began production of its Runna sedan in Iraq in 2014. Meanwhile, based on a free-trade agreement between Tehran and Damascus, IKCO enjoys a relatively high competitive advantage over other car manufactures in war-torn Syria. The company is keen to widen sales of its vehicles further afield; its major market is currently Iran, although it also sells its vehicles elsewhere in the Middle East. According to IHS Automotive forecasts, the global production of Iran Khodro branded vehicles will grow by 19.41% year on year (y/y) to reach 676,509 units by the end of 2015 from 566,256 units in 2014.
