Aryanews- Iran Khodro car ,anufacturer unveiled the locally made Peugeot 207i on Saturday for the home market.
The new Peugeot will hit the market ath the beginning of new persian year which starts on March 21.
"We decided to produce the 207i for its low fuel consumption because, with the implementation of (a decision to withdraw) targeted subsidies, such cars will be in demand," Industry and Mines Minister Ali Akbar Mehrabian said.
Mehrabian claimed the new car will have 60 percent of its parts locally produced.
"We plan to increase this to 90 percent by next year," he said.
Pierre Foret, representative of Peugeot in Iran, said the launch of the 207i was the French car maker's attempt to "develop its market in Iran."
Iran Khodro, the largest car manufacturer in the Middle East, plans to hike its production to 730,000 vehicles by next year from around 680,000 in the current year.
