India’s Tata Motors Says in Talks with Iran Khodro over Joint Venture
TEHRAN (Tasnim) – India's largest carmaker, Tata Motors, said it is in talks with Iran's leading vehicle manufacturer Iran Khodro to set up a joint venture for assembling its petrol cars in Iran following a lasting nuclear deal between Tehran and world powers.
According to a report carried by the Indian Express on Monday, a number of Indian cars, including Tiago, Bolt and Zest, which are powered by Tata Motors’ new Revotron petrol engines, will be jointly assembled at Iran Khodro’s automobile manufacturing plants in the capital Tehran and northeastern city of Mashhad.
The report added that the cars will be imported and assembled at Iran Khodro’s manufacturing facility after adding local contents like tires and batteries.
Tata Motors will also use Iran Khodro’s sales network to sell its cars.
The firm, which is headquartered in Mumbai, is part of India's massive conglomerate, the Tata Group, which runs a diverse line of businesses ranging from tea to steel.
The company's plan to work with Iran Khodro comes as Indian Prime Minister Narenda Modi is paying an official visit to Tehran. His trip will mainly focus on connectivity, infrastructure, energy partnership and bilateral trade.
Heading a high-ranking delegation, Modi arrived in the Iranian capital on Sunday. The Indian prime minister was accorded an official welcome in Tehran at the start of the two-day visit to make a case for India’s space in Iran’s market following the lifting of sanctions.
International interest in ties with Iran has been growing since Tehran and the Group 5+1 (Russia, China, the US, Britain, France and Germany) on July 14, 2015 finalized a comprehensive nuclear deal and started implementing it on January 16.
The agreement, known as the Joint Comprehensive Plan of Action (JCPOA), terminated all nuclear-related sanctions imposed on Iran.