Peugeot targets 150,000 automobile sales in Iran in second half

PSA Peugeot Citroen stated it plans to offer more than 150,000 Peugeot automobiles in Iran in the second half of this year as the French automaker seeks to reclaim the leading position it once enjoyed in the nation.

Peugeot, the biggest-selling European car manufacturer in pre-sanctions Iran, suspended sales in 2012 when a global boycott due to Iran’s nuclear program was extended to vehicles. Majority of sanctions were lifted in January this year.

The French automaker’s sales peaked at 458,000 automobiles prior to its withdrawal, almost 30 percent of the Iranian market, however it now deals with stiff competition from Chinese automakers that have obtained more business throughout the sanction years, also from western rivals such as Renault, are also gathering back with newer models.

The Paris-based automaker in July struck deal with Iranian equivalent SAIPA to invest 300 million euros ($335 million) in the development and manufacturing of 3 Citroen models through a new joint venture.

The deal with SAIPA, Citroen’s partner from 1966, follows a joint venture deal tattooed in June in between stablemate Peugeot and state-owned Iran Khodro. PSA’s smaller DS premium badge has likewise clinched a distribution contract in the nation.