TEHRAN – Iran’s major auto producer Iran Khodro Industrial Group is planning to transfer the production line of its domestically phased out passenger car Paykan to Sudan.

Preliminary agreements have been reached between Iran and Sudan to transfer Iran’s still popular passenger car Paykan to Sudan, however, the final agreement is conditional on and subject to the loan to be granted to the project, noted on Wednesday, Iran Khodro managing director Manuchehr Manteqi. He added that negotiations are underway for the Export Development Bank of Iran (EDBI) to fund parts of the project.

He also commented that continuation of the production of Paykan in the North African country is a move mainly aimed at supporting Paykan part producers to compensate for the losses incurred by the phasing out of Iran Khodro’s production cycle.

The Paykan assembly line said to be installed in Sudan’s capital, Khartoum, is expected to produce 10,000 passenger cars in the first year, the figure is planned to reach 20,000 in the next year, Iranian officials had earlier commented.

After nearly forty years, Iran Khodro finally phased out production of the nation's best-selling car last year. Some 50,000 old British Hillman Hunters - the automobiles Iranian Paykan was carbon copied from in the 60s - are still plying the streets of Iran.