Mahindra group-owned automotive design firm Pininfarina today announced a 70 million euros pact with Iran's first automaker Iran Khodro (IKCO) for vehicle development.
Under the agreement, Pininfarina will develop a modular automotive platform that can house at least four different vehicles, and the first passenger car in mid segment, the company said in a statement.
The Italian design house further said the partnership will cover a wide range of activities, including definition of concept architecture and its development and styling.
It will also cover product development through virtual and physical validation for mass production and support to start production.
"The commercial agreement, worth about 70 million euros will last 36 months," it added.
Commenting on the agreement, Pininfarina Group CEO Silvio Pietro Angori said it represented another important step in the growth strategy of Pininfarina on markets of the new Silk Road and the Middle East.
"We are happy to contribute to the development of the Iranian automotive industry through a very significant style and engineering programme for our company,” Angori added.
Earlier in February, Pininfarina had inked a pact worth 65 million euros (around Rs 460 crore) with Hong-Kong listed Hybrid Kinetic Group for developing an electric car.
As part of the agreement, the Turin-based company will support Hybrid Kinetic in the turnkey development of an electric car from the styling concept and development till virtual and physical validation for series production.
In 2015, Mahindra group had announced to acquire Pininfarina for an overall outgo of over 50 million euros (nearly Rs 370 crore) after months of negotiations.
Tech Mahindra and Mahindra & Mahindra (M&M) own 60 per cent and 40 per cent, respectively in the automotive and industrial design firm.
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