Iran's leading car manufacturer Iran Khodro Company (IKCO) recently signed three contracts with the German automaker Mercedes-Benz on joint ventures, said a report.

A total of three cooperation deals have been signed between the IKCO and Mercedes-Benz while two more contracts are in the final stage of negotiations and will be finalised in the near future, Hashem Yeke Zare, chief executive, IKCO, was quoted as saying in an Iran Daily News report, citing Tasnim News Agency.

Zare further pointed to a recent contract with France's PSA Peugeot Citroën, adding the first series of the Peugeot 2008 cars manufactured by IKCO will enter the market in the coming months.

Iran's automotive industry is the second largest in the country after its oil and gas industry, accounting for 10 percent of the country's gross domestic product, added the report.