Under the agreement, Navigo buses will be manufactured in Iran, Otokar General Manager Serdar Gorguc said in a statement, according to Turkey’s Daily Sabah on Tuesday.
“The fact that Otokar will export technology and licensing to Iran is of great importance for showing the point where the Turkish automotive industry has reached,” he said.
The assembly, sale and marketing activities of the Sultan buses will be conducted by OGHAB, the report added.
The deal will cover a three-year period with an option to extend by two years and it is said that it will generate revenues of around 50 million lira ($14 million) annually.
Back in April, High-ranking officials from Iran and Turkey signed three trade agreements as part of efforts to boost economic relations between the two neighboring countries.
The documents were signed by the two countries’ officials at the end of the 25th session of Iran-Turkey Joint Economic Cooperation Commission.