Tata Motors In Venture Talks with Iran Khodro

Tata Motors Inc. is in talks with Iran Khodro Co.(IKCO) to make gasoline-powered Tata hatchback cars in Masad and Tehran. Iran, according to media reports.

The proposed IKCO venture aims by 2018 to begin assembling Tata’s Bolt and Tiago mini-hatches and Zest mini-sedans from knocked down kits imported from India. Locally supplied components will include batteries and tires.

The companies plan to ramp up production gradually to a targeted 100,000 units per year.

Iran is relaunching its auto industry after international sanctions were lifted at the beginning of the year. In January IKCO agreed to resume a carmaking venture with PSA Group. The two companies plan to invest €400 million ($448 million) to upgrade their 50-year-old factory outside Tehran. The facility is expected to begin assembling Peugeot 208 supermini hatchbacks, 2008 mini-crossovers and 301 small sedans at the end of 2017.

IKCO operates a three-way venture with Renault SA and SAIPA to make Logan pickup trucks and Sandero sedans. Last year the company also began assembling several Chinese models.