Iran will supply 200,000 cars to Venezuela under a five-year deal signed following the visit of Iranian President Ebrahim Raisi to the South American country earlier this week.

CEO of Iran’s second largest car manufacturer Saipa said on Wednesday that a memorandum of understating (MoU), signed a day earlier between Iran’s SAIPA Automotive Group and Venezuelan Industry Ministry’s authorities, would cover exports of finished cars from Iran as well as cars manufactured in a joint plant in the country.

Mohammad Ali Teymouri said that Saipa will supply customers in Venezuela with the first batch of 2,000 cars within the next few months.

Teymouri said that authorities of the two countries had also agreed to restore manufacturing at a plant operated by Venezuelan Iranian Automotive Company (Venirauto), a company in Venezuela which has remained inactive since 2015.

He said the launch of operations at the plant, where Saipa and Iran’s largest carmaker IKCO own 36% of the shares, would allow Iran to expand its presence in the Latin American car market.

The CEO said Saipa would also work to revive another car factory in Venezuela, which is focused on production of commercial vehicles and trucks, after some nine years of inactivity.

Iran and Venezuela have joined ranks in their efforts to counter the US sanctions targeting their economies.

The two countries signed contracts worth nearly $20 billion during a two-day visit by Raisi to Venezuelan capital Caracas that ended on Tuesday.

Source » tasnimnews