Tata Motors is in talks with a local manufacturer in Iran to set up a joint venture (JV) for assembling its petrol cars in Tehran. The company is taking this step as it looks to tap the fast growing market that has just emerged from sanctions. The company is talking to Iran Khodro company for a JV to assemble knocked down units of the petrol versions of its models, including the latest compact car Tiago, Bolt and Zest, which are powered by the company’s new Revotron petrol engines.
Knocked down version of the cars will be imported and assembled at Iran Khodro’s manufacturing facility after adding local contents like tyres and batteries. Tata Motors will use Iran Khodro’s sales network to sell the cars. The branding will be of Tata Motors and Iran Khodro will be just a contract manufacturer. Initially, Tata Motors is looking at 1 lakh cars a year which will be gradually ramped up. The production at the factory, which may be located in suburban Tehran and Masad, is slated to begin by 2018.