Photo courtesy of PSA Group.

Photo courtesy of PSA Group. 

PSA Group and SAIPA, Citroën’s partner in Iran since 1966, have signed a joint venture agreement to produce and sell Citroën vehicles in Iran, according to the companies.

This 50/50 joint venture will cover the entire value chain, from the design stage to vehicle marketing and purchasing, according to the automakers. Manufacturing will take place at the Kashan plant in Iran, which will be 50% owned by PSA Group.

The joint venture will invest more than €300 (U.S.$331.7) million in manufacturing and R&D capacity over the next five years, the companies said.

Production of three vehicles adapted to the Iranian market will start in 2018 at the Kashan plant, and imported vehicles will be available from early 2017, according to the companies. Citroën models will be sold throughout the country of via a network dedicated exclusively to the brand. No less than 150 Citroën outlets will open in the next five years.