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A parliamentarian said here on Monday that production of L90 budget cars will begin from September and will reach 20,000 units by next March.
Seyyed Ahmad Mahdavi, rapporteur of Majlis Industries and Mines Commission, told Fars news agency that Iran Khodro chief, Manouchehr Manteqi, has told the commissioners that production will start in September on a trial basis.
“Mr. Manteqi said production will actually start from October and will reach 20,000 units by March 2007,“ he said, adding that the Middle East’s largest carmaker has reported a 4.8-trillion-rial net profit for March 2005-2006 period.
“The company’s net profit is expected to rise to 5.6 trillion rials by next March,“ he said.
With the mother company being Renault of France, the L90 project also involves the two major Iranian carmakers Iran Khodro and Saipa as well as 50 major Iranian car part makers, which have invested heavily in the huge project.
The giant French carmaker accepted Iran’s conditions in the highly-controversial L90 project earlier this month, putting an end to protracted controversies that had hindered the implementation of Iran’s largest auto industry joint venture.
Mohsen Shaterzadeh, deputy minister of industries and mines for economic and international affairs, said two weeks ago that the Iranian side is now preparing an additional note to the agreement with the French company.
“Renault authorities accepted our conditions and we are now writing the additional note,“ he said, adding that the ministry also regards Renault’s separate contracts with Iranian car part makers as important.
“In the L90 project, we consider such contracts as significant in addition to the export of 20 percent of Iran-made (L90) cars,“ he said, adding that car parts manufacturers can export their products through the Renault-Nissan network.
Last month, Iran had warned Renault that the production of its popular Megane sedans in the country will be contingent upon the fate of the controversial L90 project.
“The mother contract stipulates export of cars and the (Iranian) Parliament wants 20 percent of L90 cars produced in Iran to be exported,“ said Shaterzadeh.