Used in over 40 countries, the "Sultan" buses of Otokar, one of the subsidiaries of Koç Group, will now be manufactured in Iran. In accordance with the agreement signed with Iranian OGHAB, the assembly, sale and marketing activities of the Sultan buses will be conducted by OGHAB.According to a statement made by the company, Otokar will export technology and licenses to Iran for the Sultan buses, which operate under the "Navigo" brand in other countries including France, Germany, Italy and Spain. Otakar, which has been operating within the sector for over 50 years, signed a technology and license agreement with OGHAB Afshan Industrial and Manufacturing for the production of the Sultan buses. The said agreement indicates that the buses will be exported to Iran in a completely knocked down (CKD) state and their assembly, sales and marketing activities will be conducted by OGHAB. The agreement will be valid for three years, and can be extended for two more years in accordance with the demands of the both parties. OGHAB will pay a 500,000 euro license fee to Otokar under the signed technology transfer agreement. In addition to CKD purchases, OGHAB will pay royalties in varying amounts for each localized item to be procured from Iran in place of Otokar in the future.Otokar General Manager Serdar Görgüç emphasized in the said statement that the fact that Otokar will export technology and licensing to Iran is of great importance for showing the point where the Turkish automotive industry has reached. Pointing out that the Sultan buses were designed entirely by Turkish engineers, just like all the other buses manufactured by the company, Görgüç said they have allocated TL 310 million ($100 million) to R&D activities over the past 10 years, stressing that their investments in the fields of engineering and R&D have enabled them to develop products that are better befitted to the needs and desires of their customers and to take quicker steps.Highlighting that the Sultan buses, which are the leaders of the small bus market in Turkey, have also succeeded abroad thanks to the ownership of the intellectual property rights of their products and their flexible production capability, Görgüç said with the technology and licensing agreement signed with OGHAB, Sultan buses will be now put into service in Iran.