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Otokar is set to export technology, taking production of Navigo buses to Iran

Otokar, a Koç Group company, is set to produce its Navigo buses, which are currently used in over 40 countries, in Iran as well. According to the technology and licensing agreement signed between Turkey's leading automotive manufacturer Otokar and the Iranian company OGHAB, the Navigo buses to be sold in Iran will be assembled, sold and marketed by OGHAB. Serdar Görgüç, General Manager – Otokar, said that Otokar has now reached the status of a company that not only exports vehicles but also technologies and licenses, adding, "We are proud and pleased to see such positive developments as a result of operating in the automotive industry with our own intellectual properties."

Turkey's leading automotive manufacturer Otokar has just announced another first in the small bus segment. Otokar will export technology and licensing to Iran for the Navigo buses, which are sold under the Sultan brand in Turkey and greatly admired in countries such as France, Germany, Italy and Spain. With over 50 years of experience in the bus market, Otokar signed a technology and licensing agreement for the production of Navigo buses in Iran with OGHAB Afshan Industrial and Manufacturing Co. (OGHAB), an Iranian company similarly with over 55 years of experience in bus production. According to the agreement, Navigo buses will be exported as CKD (Completely Knocked Down) to Iran where OGHAB will carry out the assembly, sales and marketing activities.

The technology and licensing agreement between Otokar and OGHAB will be valid for three years, with the option to extend for two more years depending on the mutual consent of the parties. Pursuant to the technology transfer agreement, OGHAB will pay € 500,000 to Otokar as licensing fee. In addition to the CKD purchases, OGHAB will also pay royalties in varying amounts for each localized part that will be procured in Iran instead of Otokar. ​


Serdar Görgüç, General Manager – Otokar, pointed to the importance of Otokar's exporting technology and licensing to Iran in terms of demonstrating how far the Turkish automotive industry has come, and said, "Like all of our other models, the Navigo buses have also been completely designed and developed by Turkish engineers. We have allocated TL 310 million for R&D in the last decade. The investments we make in engineering and R&D allow us to develop products tailored to meet the demands and requirements of our customers, and to take faster steps. Thanks to the fact that we own the intellectual property rights for our products, and our flexible production capabilities, the success of our Navigo buses, the unwavering leader of Turkey's small bus segment, has transcended borders. As a result of the technology and licensing agreement we have signed with OGHAB, we will be offering Navigo buses to the users in Iran as well."

Serdar Görgüç underlined that the agreement will enable technology transfer as a first in the Turkish small bus segment, and noted: "We are proud to announce that with this agreement, which represents a first in the small bus segment, we will be exporting technology. Our partner in this project, OGHAB, will be responsible for the assembly of the buses, as well as sales and marketing under the Otokar brand in Iran. The estimated sales quantities and the resulting revenues may vary depending on the homologation approvals in Iran and developments in the market, and even so we are confident that Navigo will be hugely successful in a short time in the Iranian bus market." 

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