Tasnim – The chairman of the Iranian Parliament’s Industries and Mines Commission said the Defense Ministry has signed a contract with domestic automakers to produce 470 auto parts that were previously imported.

Speaking to Tasnim, Aziz Akbarian said that following efforts by the Iranian administration and the parliament, a contract valued at 16,000 billion rials ($380 million) was signed between the Defense Ministry and domestic automakers.

According to the deal, the Defense Ministry’s industries will supply 470 auto parts that were previously imported, the lawmaker said.

He added that all of the products due to be manufactured by the Defense Ministry are electronic parts.

Last week, a deputy defense minister said the ministry plans to boost cooperation with domestic companies producing auto parts in a bid to counter economic sanctions against the Islamic Republic’s automotive industry.

Back in January, CEO of Iran’s major car manufacturer Iran Khodro (IKCO) said his company is employing the technology that PSA Peugeot Citroen has brought to Iran although the French automaker has left the country in light of the US sanctions.

The IKCO chief said his company tries to continue producing the cars that were to be manufactured jointly under the contract with Peugeot even if the French side does not agree to keep the agreement.

In June 2016, Iran Khodro and the French carmaker Peugeot-Citroen (PSA) agreed to launch a joint auto company in Tehran under a joint venture worth 400 million euros.

But in 2018, the French company reneged on the agreement and decided to obey the US sanctions against Tehran by leaving Iran.