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News that Iran's domestic vehicle market is "close to saturation" is prompting home producers to look at overseas markets, but also at potentially cooperating with foreign manufacturers.

But given Iran's almost unique isolation among western countries - although France's Peugeot brand enjoys close cooperation with Iran Khodro to produce significant volumes of its 405, 206, Roa, Tondar, Grand Vitara, Samand and Bardo pick-up - the country is increasingly casting its net wider.

The move could well be prompted by the fact Iran is currently subject to swingeing overseas sanctions led by the US of course and is increasingly turning to the Islamic world.

Speaking to just-auto today from Tehran, an IKCO spokesman said it was looking at Iraq, Syria and Turkey for new markets, but was also mulling the possibility of working with its Islamic neighbours to produce a joint car.