Iran’s largest auto manufacturer, Iran Khodro Company (IKCO), exported 300 Dena models to Algeria last month.

The shipment follows a previous report about IKCO signing a contract with an Algerian company to start a production line and exchange technical and engineering knowhow.

Persian Khodro, a local automotive a website, reported Saeed Tafazzoli, the company’s export deputy, as saying that Algeria is IKCO’s second largest auto market in Africa.

“Gaining a foothold in the country will help drive exports to that region,” he added.

Tafazzoli noted that Algerian car buyers prefer IKCO’s products to Chinese cars, though he did not mention any source to back up this claim.

The company executive said Algerians have received the car positively, announcing that Algeria’s private sector has struck a joint production deal with IKCO.

“The Algerian company, Farmavol, has provided 80% of the needed investment in the joint venture and IKCO will provide scientific knowhow, technical specialist and production line equipment,” he said.

He further said the equipment have been sent to the country to launch production.

The project is expected to begin production in 2017.

Tafazzoli also said IKCO is aiming to produce 10,000 units annually in Algeria.

The first Dena built in Algeria will enter the country’s market in the first quarter of 2017.

By Financial Tribune