Chinese carmakers are making their first tentative moves into the developed car markets of the west. But in the short-term, their biggest impact is likely to be felt in smaller developing markets like Iran, where Chery has just signed a deal to set up an assembly join venture.
With a combined investment of $370m, China's Chery will hold a 30% stake in the venture while Khodro, an Irani carmarker, will own 49%. Solitac, a Canadian investment firm, will hold the remaining 21%.
The JV will make Chery's QQ6 (pictured) models in China and then reassemble and sell the cars in Iran and neighboring countries.
The plant, with a maximum annual capacity of 200,000 cars, will officially start production in nine months, the company said.
Chery, China's biggest carmaker, recently signed a landmark deal with Chrysler to produce small cars for export to the US and elsewhere.
More on Chery here.
