After sanctions against Iran were removed Peugeot announced that, from late 2017, it will begin producing cars in the Middle Eastern country.
The company will work with local ally Iran Khodro, investing some 400 million euros over five years on upgrading and improving its 50-year-old factory near Tehran.
When production at the plant commences, it will build 100,000 vehicles annually consisting of the 208, 301 sedan and 2008 crossover. Eventually, production at the plant will double.
Peugeot has worked with Iran Khodro since 1962, and while they were previously 51-49 per cent partners in the joint venture, the refreshed partnership will be an equal 50-50 split.
Alongside collaborating with Peugeot, Iran Khodro has had alliances with Renault and Mercedes-Benz.
Story references: Bloomberg