Iran Khodro, the nation's biggest carmaker, plans to produce the world's first 'Islamic' car, featuring a compass for finding Mecca and compartments designed to fit headscarves and copies of the Koran.
The car, which is expected to be made in conjunction with Turkey and Malaysia, could provide an opportunity for the three countries involved to capture a unique niche of the Middle East's automobile market.
The industry in Iran is now one of the nation's largest, employing more than 150,000 people and accounting for about 4 per cent of GDP. In 2006, Iran produced almost 1million cars, about as many as Australia, making it the largest manufacturer in the Middle East and Central Asia.
The official Iran Daily quoted the managing director of Iran Khodro, Manouchehr Manteghi, as saying that the new Islamic car would need approval from the 57-member Organisation of the Islamic Conference (OIC), and would be available by 2011 if the approval was granted. It was expected that the three countries involved in the project would meet in the coming weeks to formulate an official proposal.
In a press conference last December, Mr Manteghi said, 'This project is up to stop the monopoly of the car business by European, American and Japanese brands by introducing a joint brand of Islamic countries within three years from now.' He said he expected more than 5 million units to be sold in the first year of manufacture, and that Iran Khodro would take a leadership role in the project.
Proton, a Malaysian-based car manufacturer, is the other player in the car development. The company has a limited export market of about 20,000 cars a year, with most of these going to small markets such as Bangladesh, Brunei and Nepal.