Iran signs JV contract for 500,000 automatic transmission units
Tehran, Iran, May 26
By Mehdi Sepahvand – Trend:
Iran has signed a joint venture contract with a foreign company to produce 500,000 automatic transmission units per year, Director of Investment at Industrial Development and Renovation Organization (IDRO) of Iran Fardad Daliri said in an international industrial exhibit in Tehran, Trend correspondent reported from the event May 26.
The official said that these gearboxes will be used in cars produced by two major Iranian car manufacturers Iran Khodro and Saipa.
He noted that the transmission units will be of the CVT type. A CVT uses a belt or other torque transmission scheme to allow an infinite number of gear ratios instead of a fixed number of gear ratio as in conventional automatic transmission systems.
He further noted that for the current Iranian fiscal year (to end March 20), these two companies are set to produce over 1.5 million cars. The two produced 1.3 million cars last fiscal year.
According to Daliri, the two major carmakers should boost their output to 2 million by 2025, with at least 1 million of the products using automatic transmission systems.
He further noted that talks with Renault are being finalized for the joint production of 150,000 cars per year.
Last year Iran reached deals with Peugeot and Citroen for the joint production of 150,000 cars with each.