In a press release, Idro’s deputy director for expansion of industrial investment Mr Fardad Daliri said that the first phase of the project will focus solely on the production of passenger vehicles. Daliri added that the partnership will “attract investment and use up-to-date technology in the domestic manufacture of freight and passenger cars.”

No further details of the contract have been disclosed.

Last October, Siemens signed an agreement with Mapna, Iran, for the local assembly of diesel locomotives for Iranian Islamic Republic Railways (RAI).