Citroën and DS, will return to Iran


Peugeot and Citroën will assemble within the country, while the DS are imported from France

Iran has signed another agreement of importance with PSA with respect to the brands Citroën and DS, which will also be marketed in the country. The final signature will occur in a couple of months, although the final conditions should be similar. Thus, PSA ensures that its three brands implanted in a market as estratégido as is the iranian.

The PSA Group aims to take back the market shares it had in Iran before the international sanctions (2012-2015). Was the principal market of the Middle East, which came to 1.6 million units in 2011. PSA was distributed to 30% of the sales (more than 450,000 units a year), but was forced to leave the country with a significant economic cost.

The brand Peugeot will return to the partner Iran Khodro (IKCO) from 2017. The DS are going to be imported from France, which will imply a higher price, to be available before the end of the year. The Vehicle will be manufactured at the plant in Kashan from the year 2018.


The Website iranian DS already says “coming soon”

Citroen and SAIPA members are historical in Iran since 1966. We talk about the second group-largest automaker in the zone (Middle East and North Africa). SAIPA produces 40% of what is sold in the iranian market, and exports vehicles to 21 countries. Currently no Automobile manufactures in Iran.

PSA and SAIPA are going to create a joint venture (joint-venture), and the property shall be apportioned at 50%. They are going to get 300 billion euros of investment up to 2021, to give rise to the entire chain of value, from design to marketing. For that year Citroën aims to achieve 150,000 sales, almost 10% of fee if we look at the actual numbers.

The final agreement will be signed at the end of the year

The site chosen to manufacture the Citroën iranian is located 200 miles south of Tehran; the factory was inaugurated in 2010. In an initial phase, 40% of the components will be manufactured within the borders of the persians, with the aim of reaching the 70% in the future.


SAIPA makes chinese models, in addition to Renault, Dacia and Kia

Will produce three models, which we do not have many details. We know that the first will be a model that is already designed, and that the other two be models, completely new and developed according to the european standards. From 2019 onwards, will begin production of a new engine, and most of the parts will be sourced locally as to 2020.

These negotiations come after the agreement between Peugeot and Iran Khodro, which will invest 400 million euros over the next five years, to produce locally the 208, 2008 and 301, from 2017. To date, there have been manufacturing models discontinued in Europe, such as the 405 or the 206, due to the lower demand legislation of that country.

will Not be a breeze to retrieve the previous volumes of international sanctions for the simple reason that chinese and koreans have taken advantage of the situation to place their products in that market. It has a high potential of growth for the emerging middle class, the end of sanctions, and the high average age of the circulating fleet of vehicles.


The Citroën C-Elysée is one of the most likely candidates to return to the iranian market

Carlos Tavares, the president of the PSA Group, stated that the manufacturer wants to offer to the iranians to modern cars in terms of comfort, safety and technology. These three attributes are absent in many of the cars that circulate the country, accustomed to cars or obsolete technologies are not very modern.

Iran is, like many other countries, a little tight with respect to imported cars. , For years, was avoiding this issue by using the CKD, that is to say, the car unarmed, that are imported as parts, and that ended up being mounted locally to avoid taxes. It is a protectionist policy similar to that in China.

PSA prefers to produce cars locally, for each car that it produces IKCO or SAPIA, generates a profit per license. It also gets money through the sale of components and, of course, by the half of profits that give the joint venture. The licenses are made cheap in virtue of an agreement under which PSA will compensate a little at IKCO by having abandoned its partners in 2012 (for obvious reasons).