Tasnim – The CEO of Iran Khodro Company (IKCO) announced that his company has recently signed three contracts with the German automaker Mercedes-Benz to launch joint ventures.

Speaking to reporters in Tehran on Saturday, Hashem Yeke Zare said three cooperation agreements have been signed between the IKCO and Mercedes-Benz.

He added that two more contracts between the two companies are in their final stages and will be finalized in the near future.

The official also pointed to a recent contract with France’s PSA Peugeot Citroën, saying the first series of the Peugeot 2008 cars manufactured by the Iran Khodro Company will enter the market in coming months.

Iran’s automotive industry is the second largest in the country after its oil and gas industry, accounting for 10% of the country’s Gross Domestic Product (GDP).

The industry is expected to grow significantly after Iran and six world powers in July 2015 reached a conclusion over the text of a comprehensive deal on Tehran’s nuclear program and started implementing the agreement on January 16.

The nuclear deal between Iran and the Group 5+1 (Russia, China, the US, Britain, France and Germany) terminated all nuclear-related sanctions imposed on Iran.