Fiat Auto SpA signed an agreement with Pars Industrial Development Foundation (PIDF) to manufacture and sell vehicles in
Iran.
According to the agreement, Fiat will manufacture Palio, Siena and Palio Weekend Adventure models at the PIDF plant in Tehran.
Production is slated to begin in the second half of 2005.
Considering
Iran as a market with high growth potential in the automobile sector, Fiat Auto announced a target of 250'000 vehicles p.a. at full
production capacity.
800'000 vehicles were sold in
Iran in 2004 and the number is expected to rise 1.3 million p.a in five years.