TEHRAN, Aug. 30 (Xinhua) -- Iranian automaker, Iran Khodro (IKCO), will seal a deal with Nissan Motor Co for production of low-budget Datsun cars, the IKCO's CEO, Hashem Yekezare, said on Wednesday.
"We will enter into a contract with Japan's Datsun in the next few months," Yekezare was quoted as saying by Financial Tribne daily.
IKCO's talks with Nissan for production of affordable cars of high quality began in early 2016, with the Iranian automaker targeting Datsun cars in the price range of 11,500 U.S. dollars.
The production of Datsun cars can potentially enable IKCO to phase out its dilapidated models in the same price category including the Peugeot 405.
According to Yekezare, Iran levies tariffs of 40 percent for imports and 26 percent for production, which means Iranian customers have to buy the imported cars at bloated prices.
Officials say the tariffs are needed to protect the domestic automotive industry.
Iran's automakers have been approaching Honda, Toyota and Mitsubishi in the hope of transferring Japanese technology.