November 28, 2024

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[THE INVESTOR] South Korea’s largest automaker Hyundai Motor plans to manufacture Elantra compact sedan in Iran, according to the Iranian media. 

Hyundai on March 13 (local time) signed a contract with Kerman Motor Company in Iran to begin production of Elantra, sold as Avante in Korea, at the Iranian car manufacturer’s facility in the country starting September, according to Financial Tribune. 

“Our target is to employ 10,000 people by 2019,” Saman Firouzi, chief executive of Kerman, was quoted as saying. 

The Tehran-based firm also aims to produce Hyundai Accent subcompact cars in September. 

Hyundai and its smaller corporate cousin Kia Motors have been expanding their business in the country, especially after international sanctions against Iran were lifted after the country agreed to curb its nuclear program last year. 

In January, Kerman Motor started rolling out Hyundai’s i10 and i20 hatchbacks in the country, while Kia Motors resumed its knockdown business with Saipa, Iran’s No.2 carmaker, last year, assembling Forte compact -- sold as K3 in Korea.

By Ahn Sung-mi (sahn@heraldcorp.com)