ProtonAn agreement has been inked between Proton and Iranian distributor Zagross Khodro for the supply of automotive parts to Iran which will allow Zagross Khodro to assemble CKD kits of the Proton GEN2 in Iran. Assembling the Proton GEN2 locally in Iran will enable more competitive pricing.

The first locally assembled Proton GEN2s are expected to roll off Iranian assembly lines in April 2009 from Zagross Khodro’s assembly plant in Borujerd city, southwest of Iran. The two companies have previously inked two other agreements on licensing, technical assistance and equipment purchase.

Proton and Zagross Khodro’s CKD partnership goes back to the early 2000s where the latter assembled and sold the Proton Wira in Iran. It previously sold fully imported Proton cars in the Iranian market. Zagross Khodro was established in 1996 and claims to be Iran’s largest private automotive company.