Reporting "Asre Khodro", The plant will be set up in collaboration with the Iranian private firm Arvand Automotive Industrial Group, according to IRNA. But the timeframe for the project has not been disclosed yet.
Head of IDRO Mansour Moazemi, who is also deputy minister of industries, said, “IDRO will provide 20% of the investment while the rest will come from the private sector.”
He said several models of vehicles will be produced under the deal. According to the official, "the models are yet to be finalized."
IDRO "will not have a managing role in the production plant" and act only as a facilitator in regional job creation.
During the last fiscal (ended March 20), IDRO came into the spotlight when the state-owned industrial juggernaut began striking deals with foreign and local firms as a means to facilitate car production.
IDRO and French automaker Renault is set to produce vehicles later this year (started March 21) through a joint venture signed last year.
According to earlier statements by the IDRO official, Renault Symbol, Duster and Kwid cars will be produced through the JV. The JV is set to produce 150,000 cars per year in Iran.
Kwid is likely to be the first vehicle produced under the joint venture, with the price believed to be less than 300 million rials ($ 8,000) according to earlier reports.
It was reported earlier that Saveh town, south of Tehran, would be the production center for the Kwid.