CAIRO: In a ceremony attended by the senior managers of Center of Development and Commerce Wagih Abaza (CDC), major Iranian automobile manufacturer Iran Khodro and Automobiles Peugeot, the three automotive industry gurus celebrated the activation of the production line of Peugeot PARS TU5 in Egypt.
After several years of manufacturing Peugeot 405 in Iran Khodro, the company decided to offer passengers a new car, namely Peugeot PARS, in 1997. By February 1999, production was fully functional.
The production capacity of PARS project in Egypt is three cars per hour in each working shift, in order to reach the target of the first phase of the project, which is the production of 5,000 PARS cars with a TU5 engine.
The car has made a significant progress in the Iranian market, Iran Khodro chief executive Manouchehr Manteghi said during the launch ceremony. We believe it suits the needs of the Egyptian consumer and we are very optimistic about its future here.
Currently, our focus is on the local market, so all these 5,000 cars will be sold in Egypt, general manager of CDC Mamdouh Abaza told Daily News Egypt. Once the car is well established in Egypt, we will become the African gateway for PARS.
An agreement between Iran Khodro and CDC Wagih Abaza was signed back in 2006 to operate a production line for Peugeot PARS in Egypt.
According to the officials of CDC Wagih Abaza, the price of the car will not exceed LE 90,000, to suit a rather price-sensitive Egyptian market. The car will be delivered the customers who have booked the car by April 2008.
The initial booking of the car has already started for customers without any down payment needed, Mamdouh Abaza said during the ceremony, This is part of a market study to know what customers need in terms of colors and other requirements.
The Egyptian project has passed the phases of operating the production line of the body, paint and decoration. It is now ready to proceed in extended manufacturing.
Iran Khodro, which has succeeded in establishing a strong foundation for the manufacturing of its cars Samand & PARS beyond its national borders, has established and operated car manufacturing facilities in Syria, Venezuela, Russia, Belarus and Azerbaijan and now in Egypt.
However, Egypt is the first overseas location where the operation and commercial manufacturing of the Peugeot PARS cars with a TU5 engine takes place.
When I first went to Iran, I was impressed with Iran Khodro s factory, whose capabilities are not any less than that of the Peugeot factory in France, Mamdouh Abaza said,
People here have a wrong perception about industry in Iran, but the truth remains that they produce 1.1 million cars in a year, while in Egypt, we produce only 60,000, he added.