Tata Motors in talks to establish car unit in Iran

India’s Tata Motors is having talks with a local maker here to establish a joint venture for assembling its petrol cars in Iran as it looks to tap the fast growing market that has recently emerged from sanctions.

Tata Motors is talking to Iran Khodro for a joint venture to assemble knocked down devices of the petrol versions of its designs, including the most recent compact car Tiago, Bolt and Zest, which are powered by the new Revotron gas engines.

Torn down version of the automobiles will be imported and assembled at Iran Khodro’s manufacturing facility after including regional contents like tyres and batteries.

Tata Motors will utilize Iran Khodro’s sales network to offer the vehicles.

The making will be of Tata Motors and Iran Khodro, it will be a contract manufacturer, that Tata Motors will its work in Iran under 2 years.

Initially, Tata Motors is looking at 100,000 automobiles a year which will be slowly ramped up. Production at the factory, which may be found in suburban Tehran and Masad, is slated to start by 2018.

Iran Khodro had earlier this year restored collaboration with French manufacturer PSA Peugeot Citroen.