LATIN AMERICA (Bloomberg) -- A Venezuelan-Iranian joint venture may start assembling cars in the South American country within 10 months, Venezuela's light industry minister said.

The company may assemble cars in the former Fiat SpA plant in the central industrial city of La Victoria, Light Industry Minister Edmee Betancourt said in an interview with Union Radio. The plant would follow a similar Venezuelan-Iranian venture that builds tractors, she said.

“It's possible that the plant will be installed there,” Betancourt said. The plant will assemble economy cars, starting at a base price of 16.1 billion bolivars ($7,497), she said.

Venezuelans bought a record number of vehicles last year, as increased government spending fueled consumer demand. Sales rose 70 percent to 228,378, beating the previous record set in 2001.

President Hugo Chavez signed several economic cooperation accords with former Iranian president, Mohammad Khatami, in May. Chavez said on May 22 that he plans to seek Iran's help in developing a nuclear energy program.