Carmakers lead Tehran stock Exchange
Baku, Azerbaijan, March 2
By Farhad Daneshvar - Trend:
The shares of the Iranian automotive industry have shown the highest growth in the Tehran Stock Exchange over the past two months, an Iranian financial analyst said.
"The surge came following the recent deals clinched between Iranian and international carmakers," Alireza Kadivar, told Trend March 2.
"The recent deals made between Iranian and international carmakers made the stock traders to feel optimistic. That is why the car industry showed the positive performance in the stock exchange," he added.
According to him the main index of Tehran Stock Exchange has surged by 25 percent since January. However over the past several days, the main index has been stable.
One of the first post-sanctions contracts to be signed between an Iranian and a foreign company was a contract between major Iranian car manufacturer Iran-Khodro and the French Peugeot.
The deal envisions the production of three models of Peugeot in Iran through 50-50 venture.
Iran-Khodro has been manufacturing two models of Peugeot for several years, so much so that these two models have become prototypical cars in the minds of many Iranians.
The company started manufacturing Peugeot 405 around the year 2000. The production still continues. A few years later it added Peugeot 206 to its products, which is also still being manufactured. The Iranian "national vehicle" Samand is also a reshaped Peugeot 405.
Mercedes-Benz, a multinational division of the German manufacturer Daimler AG, as well as France's Renault are also among those international carmakers eyeing Iran business.