Azerbaijan, Baku, Nov.19/ Trend G.Mehdi/
An Iranian MP has stated that if Peugeot returns to the Iranian market, the country's car output will be increased once again, ISNA reported.
Mohammad Bayatian told ISNA that Peugeot has expressed interest to resume activity in Iran.
Europe's second-largest carmaker posted a 662 million euro ($800 million) first-half loss in its auto division, dragging its group bottom line into the red - as it had warned earlier this month when announcing 8,000 French job cuts and a plant closure.
This slump is primarily related to provisions for the group's decreasing exports of automotive parts to Iran, the report noted.
On October 8, Iranian giant carmaker Iran Khodro (IKCO) increased its product prices by 10 percent, while the other Iranian carmaker, Saipa, boosted prices by 20 percent.
Decrease of domestic production and rise of import limitations as well as dollar price growth led to unprecedented increase in car prices in Iran.
On September 15, the ILNA news agency reported that prices of different cars increased by around 35 percent on the average since March 2011.
According to the report, supply has decreased but demand is still high.
Iran plans to manufacture at least three million cars by 2025 and export some 1 million sets, the Trade Minister Mehdi Ghazanfari said on June 16.
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