The Iranian government has sold an 18 per cent stake in car manufacturer Iran Khodro for $430m.

The stake was bought by a group of Iranian investors including Iran Khodro employees, investment firms and pension funds, according to local media reports.

Iran Khodro manufactures cars and trucks and has a joint venture with France’s Renault to make the Logan car which is sold in Iran as the Tondar 90.

The government still holds about 20 per cent of the company.

Iran Khodro has an average market share of 65 per cent in the country and plans to increase production to 730,000 vehicles by 2011 from about 680,000 in 2010.

Iran is planning to privatise 60 companies this year including a number of transportation companies. These firms include railway operator Raja Passenger Trains Company that operates international trains linking Tehran with Istanbul and Damascus, Iranian Oil Terminals Company (IOTC), car manufacturers Iran Khodro and Saipa, Saipa Logistics and Keshtisazi Arvandan Shipping Company.

The government will also privatise 60 per cent of its national carrier Iran Air during the current Iranian year (MEED 25:5:10).