Iran has signed contracts with two domestic automakers to produce 6,000 trucks with the help of Chinese manufacturers, the head of Iran's Road Maintenance and Transportation Organization said on Tuesday.

Iran's auto sector has started standing on its own feet after years of reliance on imported car kits which foreign companies stopped supplying when the US reimposed sanctions on the Islamic Republic in 2018.

A parts maker says there is low chance Peugeot and Renault would return to the Iranian car market.

Iranian automakers will produce more than 1.3 million cars next year, marking a 50 percent jump in production in the face of US sanctions, a deputy industry minister says.

When French automakers Peugeot and Renault exited Iran along with other international companies in 2018, the ensuing supply crunch produced a chaos which saw car prices vault to unprecedented highs.

Managing director of Iran Khodro (IKCO) says Iran is now producing more than 50 auto parts which were imported.

Iran’s IKCO unveils automatic and manual types of a first 6-speed gearbox built inside the country.