Changan's compact Benni, which it developed in-house, will be assembled at a facility near Tehran beginning in the first half of 2009, targeting the local market, the Chinese company said in a statement.
The facility, to be built by its partner Pars Industrial Development Foundation, will have initial annual capacity of 50,000 units, rising to 250,000 eventually, it said.
Changan, which runs a three way tie-up with Ford and its Japanese affiliate Mazda Motor, is among a growing number of ambitious Chinese automakers hoping to build up a global brand name.
It aims to sell 200,000 vehicles overseas in 2010, up sharply from roughly 50,000 last year, a company spokesman said. (Reporting by Fang Yan; Editing by Edmund Klamann)