Iran scales back stake in top carmaker

Iran on Wednesday reduced its stake in the country's largest carmaker, Iran Khodro, in what state media called the company's biggest privatisation in two decades.

"Iran Khodro shareholders have approved the entry of five private firms into the board of directors, transferring management of the carmaker to the private sector," the official IRNA news agency reported.

IRNA did not specify whether the state had fully divested or retained a minority share.

Iran, the Middle East's largest car market, has several domestic manufacturers.

The consortium that assumed control of Iran Khodro pledged in a statement to "improve vehicle quality" and disclose the company's financial losses.

State-owned carmakers in the Islamic republic have faced criticism over poor vehicle quality, high prices and persistent losses.