Iran to turn into regional Volvo production hub

Business Materials 12 May 2015 18:27 (UTC +04:00)

Tehran, Iran, May 12

By Mehdi Sepahvand - Trend:

An Iranian automotive industry official has said that the country is going to turn into a regional hub for the production of Volvo vehicles.

"We will turn Iran into a regional hub for the production of Volvo, and having in mind the abilities of domestic producers, we will enhance the percentage of the production of this brand inside the country," Said Madani, CEO of Saipa Car Manufacturing Group said.

"Considering our situations, our plans must for sure address the regional market with a population of 400 million people, instead of the domestic market with a population of 70 million," he said in a ceremony to unveil the Iranian-produced Volvo FH500 truck, IRIB news agency reported May 12.

He noted that Iran's private sector has been successful in developing the production of commercial vehicles in the past few years.

According to statistics by OICA (Organisation Internationale des Constructeurs d'Automobiles), Iran's commercial vehicle manufacturing rose by 46 percent in 2014 to reach 164,871.

Edited by CN

Mehdi Sepahvand is Trend Agency's journalist in Iran, follow him on Twitter: @mehdisepahvand