"Iran Khodro has managed to become self-sufficient in producing 90 percent of the parts for the (popular Peugeot model) 206, and an effort is being made to use local suppliers for parts that were previously imported," IKCO CEO Hossein Najjari said.
Peugeot's parent company PSA Peugeot Citroen in February suspended its sales of car assembly kits to Iran, which had been its top export market in terms of trade volume up to then.
The decision appeared to be tied to Peugeot's alliance with US group General Motors, and US sanctions pressure on Iran over its civilian nuclear program.
Peugeot is said to have halted exports to Iran under the pressure of the United Against Nuclear Iran (UANI) group, a Zionist-led American anti-Iran lobby group.
PSA Peugeot Citroen on Wednesday announced it will seek to cut 1.5 billion euros ($1.8 billion dollars) in costs over the next three years after declaring an 819-million-euro ($989-million) loss for the first half of 2012.
Peugeot's exports to Iran, where locally assembled versions of its 405 and 206 models are prevalent on the roads, represented up to 800 million euros in revenue per year before they were suspended, and this means a huge loss for the French company.
Thousands of workers were fired by Peugeot after its decision to halt exports to Iran.
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Iran's largest carmaker, the Iran-Khodro Company (IKCO), announced that it is coping with a decision early this year by troubled French car maker Peugeot to halt exports of vehicle kits for assembly.
News ID 182339
