Japanese Suzuki Car Company is negotiating with Iranian car maker Iran Khodro to launch a new production line in Iran.
Abdollah Babaee, director of marketing and sales at Iran Khodro, said Suzuki is among the companies Iran Khodro is negotiating to expand cooperation with, Iran's ISNA news agency reported on June 11.
Meanwhile, the two French car makers Renault SA and PSA Peugeot CitroënSA have taken initial steps toward resuming deliveries to Iran, previously one of their biggest markets.
Renault and Peugeot executives met with Iran's Industry Minister Mohammad Reza Nematzadeh at an auto-parts fair in Tehran in late November 2013.
The meetings came days after the signing of an accord between Iran, the U.S., France and four other countries, under which Tehran agreed to scale back its nuclear activities in exchange for some sanctions relief.
"The foreign firms are very eager to establish ties with Iranian auto manufacturers and we intend to help further develop the country's auto industry through such interactions," Nematzadeh said.
On April 29, Mohammadreza Najafimanesh, member of the board of directors of the association of Iranian car part makers said some $2 billion is needed for Iranian car manufacturers to meet the country's production target.
He added that the country's car output is projected to hit 1.3 million in the current calendar year. The current Iranian calendar year began on March 21, 2014.