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Iranian carmaker to launch production line in Armenia

File photo shows Iranian carmaker the IKCO’s Tara model on display during an international car show.

A senior official from Iran’s industries ministry (MIMT) says an Iranian carmaker and a private investor in Armenia will team up to launch a car production facility in the Caucasian country.

Alireza Peymanpak, who heads Iran’s Trade Promotion Organization, said on Saturday that the MIMT and Armenia’s ministry of economy have been pursuing the joint project for manufacturing an Iranian car model in Armenia.

“An initial agreement has been reached for setting up the production line for an Iranian-made car in Armenia and a feasibility study is being carried out on the basis of this agreement,” Peymanpak was quoted as saying in an MIMT report.

He said Armenia would not charge import duties on Iranian car model planned for local production in the country due to a trade agreement between Iran and the EAEU bloc of regional countries that include Armenia.

“(we hope) we could take the maximum benefit of this opportunity and turn Armenia into a hub for manufacturing and exporting of Iranian goods and products,” the official said.

The deputy Iranian industries minister would not elaborate on the name of the Iranian car model being considered for joint manufacturing in Armenia.

That comes as Iran’s largest carmaker the IKCO has already launched exports of finished cars to Armenia with a pilot shipment of 200 sedans supplied to the country last month.

The IKCO had said in September that it would supply its Tara and Dena models to customers in Armenia. The company said it had launched a dealership and other facilities in Yerevan to publicize other products and increase its exports.

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