Reporting "Asre Khodro", PSA’s global sales volume rose to 3.146 million vehicles in 2016 from 2.972 million the previous year, the Paris-based company said in a statement on January 11, Reuters reports.
The 2016 sales growth represents PSA’s best yearly performance since 2010, making it cross the 3 million-vehicle threshold for the first time since 2011.
Sales rose 3.56% in Europe and surged 112.8% in the Middle East and Africa region, as the Peugeot brand benefited from the lifting of international sanctions on Iran.
Sales dropped by 15.98% in China and Southeast Asia and by 12.58% in Eurasia, which comprises Russia.
Peugeot’s Q1 2017 profits are likely to grow further as the company continues its growth in the Iranian market.
In August 2016, PSA signed a deal to start production of Citroen branded vehicles in the local market.
SAIPA’s deal with Citroen, its historic partner since 1966, which named SAIPA from a French synonym Société Anonyme Iranienne de Production Automobile will kick start production in early 2018.
As part of the deal, SAIPA will overhaul its production facility and invest $300 million in development projects. It has also been announced that the group will stop the production of Tiba 2 and Pride models.
Citroen models will be sold throughout the country via a network dedicated exclusively to the brand.
The first of three planned new Citroen models will be launched in Iran in 2018.
The 50/50 joint venture lays the foundation for a strategic partnership between the two companies. It will cover the entire value chain, from the design stage right through to vehicle marketing.
Manufacturing will take place at the Kashan plant in Iran, which will be 50%-owned by PSA Group.
Meanwhile, Iran Khodro, SAIPA’s main rival in the local market signed a deal with PSA Group in June 2016.
The 50/50 joint venture is expected to bring in €400 million over the next five years in manufacturing and R&D capacity.
The investment will contribute to the development of a competitive manufacturing base for producing, launching and marketing Peugeot 208, 2008 and 301 models, fitted with the latest-generation engines.
According to IKCO officials, 100,000 cars will be manufactured in the first phase and 200,000 in the second over the next couple of years.