Turkey's Otokar says it has signed license deal with Iranian company for exports

Turkish commercial vehicle maker Otokar said on Dec. 19 that it had signed a technology and license deal with Iran's Afshan Industrial and Manufacturing Co. (OGHAB) concerning the export and sale of its Navigo buses, in a written statement to the Public Disclosure Platform (KAP). 

Otokar said the deal covered a three-year period with an option to extend by two years. It claimed that the deal could generate revenue of around 50 million Turkish Liras ($14 million) annually. 

Otokar will export its Navigo buses in the form of CKD to OGHAB to be mounted in Iran, and the mounted vehicles will then be sold and marketed by OGHAB under the Otokar brand, according to the statement. 

For the periods after the first year of the contract, a minimum of 500 vehicles will be secured under the condition of the compliance of the vehicle to the local legal requirements, the statement added.