Iran will supply 200,000 cars to Venezuela in 5 years

Iranian President Ebrahim Raeisi signed several agreements during a trip to Venezuela earlier this week. According to an agreement signed by Raeisi, it was announced that Iran will supply 200,000 cars to Venezuela for 5 years.

According to Iranian state media Press TV news, Mohammad Ali Teymouri, CEO of Iran’s second-largest automaker Saipa, made a statement on the matter yesterday.

Teymouri said that, according to the memorandum signed the day before by the officials of the Venezuelan Ministry of Industry, the vehicles to be produced in a joint factory in the country are within the scope of the agreement, as well as the cars that will be shipped from Iran.

IRANIANS WILL OPERATE FACTORY IN VENEZUELA

Teymouri said that the authorities of the two countries have agreed to restart production at the Venirauto plant in Venezuela, which has been idle since 2015. Teymouri also announced that Saipa will supply the first batch of 2,000 vehicles to Venezuelan customers in the coming months.

If the factory, in which Saipa and Iran’s largest automaker IKCO have a 36 percent stake, goes online, Iran’s presence in the Latin American auto market will also expand.

Finally, Teymouri said that Saipa will also work to revitalize another automotive factory in Venezuela that, after almost nine years of inactivity, focuses on the production of commercial vehicles and trucks.

$20 BILLION DEAL

Cooperation between Iran and Venezuela is seen as part of efforts to counter US sanctions against the economies of the two countries.

It is estimated that Raeisi signed contracts worth approximately $20 billion in Venezuela, while the two countries joined forces as part of this effort.