Iran Khodro, the largest carmaker in the Middle East, has struck a deal with Senegal to make its Samand cars in the West African country.

A new company, 60 per cent-owned by Khodro, will be set up in Senegal to build the passenger vehicles, a Reuters report said.
“The factory to be built in Senegal is going to produce high-quality cars in line with international standards,” Iranian President Mohammad Khatami said during a visit to Senegal’s capital Dakar.
“Production will be 5,000 cars in a first phase, which may then go to 15,000, or 20,000 units a year.”
Senegal hopes to profit from its growing reputation as a stable democracy in an often-turbulent region to attract investment although it has poor infrastructure and is ranked 157 out of 177 in the UN’s human development index.
 The other 40 per cent of the company will be split between the Senegalese government and private investors and the cost will be 41.3 billion CFA francs ($82.6 million).
Car companies from rich Western nations have been assembling cars and pickup trucks in a handful of sub-African countries for a while although South Africa dominates, making 83 per cent of the vehicles produced in Africa.
DaimlerChrysler, Volkswagen, BMW, Toyota Motor Corp, Nissan Motor Corp and General Motor Corp all make vehicles there.
PSA Peugeot Citroen produces cars in the oil-rich former British colony of Nigeria while GM also has a plant there and in the east African country of Kenya.
   Iran Khodro manufactured more than 450,000 vehicles in the year to March 2004 and hopes to increase manufacture to 750,000 vehicles including cars and buses in the year to March 2005.
France’s Peugeot and Renault have both signed deals to make cars in Iran with Khodro and the car giant hopes more partnerships with foreign partners will allow it to grow big enough to meet rampant demand at home.