According to the company officials the production line for new models will go on stream from 2004.
The new deal paves the way for the production of luxury cars including the C5, C4 and C4 sedan models.
The annual rate of car production in Iran jumped up from 27,000 cars in 1989 to 500,000 cars in 2002. The target for 2005 is 750,000 cars a year.
Iranians complain that the prices of cars are very expensive in Iran. One reason normally cited for the high prices of domestically manufactured or assembled cars is ban on the import of foreign made cars.
Market prices of new models will range from around 15,000 to 43,000 dollars. The average monthly salary of a government employee is 150 dollars.
The company has promised Iran to export the locally assembled
C4.
Saipa, one of Iran's two main car makers, presently assembles
the older Citroen Xantia, as well as models from South Korea's Kia
motors and Japan's Nissan.
Citroen's PSA partner company Peugoet has joint ventures here
with Iran Khodro.
MS/SM
END
MNA