Iran's leading car manufacturer Iran Khodro Company will provide Peugeot with the parts it needs in its proposed Algeria plant, according to a senior company official.

The company can also invest in Algeria to produce and sell its products to Peugeot, Hashemi Yekke Zare, CEO of Iran Khodro, was quoted as saying in an Iran Daily News report, citing Trend News Agency.

Peugeot maker PSA Group in November signed a joint venture agreement with three Algerian partners to build cars in the North African country.

The French carmaker said it would invest around €100 million ($117.95 million), equalling 49 per cent of the joint venture’s capital.

Referring to the auto industry as one of the most lucrative industries in Iran, the Iran Khodro chief noted that car makers have saved Iran as much as $15 billion in one year by eliminating the need for imports.