This 50/50 JV will invest more than €300m in manufacturing and R&D capacity over the next five years, and will cover the entire value chain, from the design stage right through to vehicle marketing, including purchasing.

Manufacturing will take place at the Kashan plant in Iran, which will be 50% owned by PSA Group, and will kick in from 2018 with production of three vehicles. These will be accompanied by imported Citroën models from early 2017, which herald the brand’s return to the market, and will be sold throughout the country via an exclusive Citroën network – a total of 150 Citroën outlets will open in the next five years.

Carlos Tavares, chairman of the PSA Group Managing Board, said: “With more than 50 years of presence in Iran, PSA Group through this new strategic partnership is clearly committed to the deployment of a rich product plan that meets the expectations of Iranian clients.”