Reporting "Asre Khodro", Iran’s automotive production in the first two months of the Iranian year which ended May 20 stood at 158,571 vehicles, and was 2.8% down on the year, on sluggish demand following the years of sanctions, SBB - Steel Business Briefing reported citing the Iranian Vehicles Maker Association.

Iran targets a 1.3 million cars output production of in the current Iranian year.

Since the lifting of the international sanctions against Iran in mid-January, the country’s two main car manufacturers Saipa and Iran Khodro, are in negotiations with French manufacturers to boost the Iranian output, a source from the auto industry told Platts. The country is also in talks with other European car makers but Peugeot and Renault are seen closest to direct investment in Iran's auto industry.

The automotive industry is considered the second most important industry by share in GDP and employees in Iran following the oil and gas industry.

Source: emis.com