TEHRAN -- Deputy head of Iran's auto manufacturing giant Irankhodro Industrial Group Rahi Ismaeli said here Sunday that the company has attracted over $500 million of foreign capital since the beginning of the current Iranian year of 1382 (started March 21).

He said it is estimated that the figure would increase to $900 million by the end of the year.

Speaking to IRNA, he added as the company's activities increase it will be increasingly difficult to garner adequate funds from domestic resources.

He also said foreign resources will reduce the companies' need to offer pre-sale schemes, and will lower the financial costs and be an impetus for increasing production.

Irankhodro is also keen on using long-term international financing which will assist it in plans to increase automobile production capacity, Ismaeli added. On domestic financing, he said the company's cash flow is close to rls 40,000 billion annually, "but, credit allotted to it is only about rls 4,000 billion which is a mere 10 percent of the companies' need."

He said the best category of foreign investments is that which creates value-added and transfer of technology. He also acknowledged that cultural, political, economic and international atmosphere is an important factor in motivating foreign companies to invest in the country. He rejected claims of France's Peugeot to buy shares of the company as "rumors." However, he added there is no legal obstacle in selling Iranian shares to foreign companies "but, it should be conducted in the stock exchange at market prices."

Meanwhile, Managing Director of Irankhodro Manouchehr Manteqi said here last month that the company's auto production capacity has risen to 2,000 units a day following the commissioning of three production lines.

Manteqi said at a ceremony to mark the inauguration of new production lines at the company that Irankhodro aims to export its products in the next two years.

He said that under a 10-year plan Irankhodro is to export 12 to 15 percent of its products.

He added that Irankhodro aims to raise the quality and competitive power of its products, market them at cheap prices and win customer satisfaction.

He said five models of cars are to be produced by Irankhodro in the future, including Peugeot 307, Peugeot 206, two models of Samand cars, and new models of small cars to substitute Paykan.

The official said Irankhodro ranked 17th among major auto manufacturers worldwide and it targets a 59 percent increase in its products this year.