Reporting "Asre Khodro", President Hassan Rouhani officially launched the production line of Peugeot ۲۰۰۸ on April ۲۷, and IKCO officials present at the event had stated that the company is set to annually produce ۳۰,۰۰۰ units of the model.
Furthermore, the car, priced at $۱۶,۵۰۰ in the international markets will be sold for ۹۰۰ million to ۱ billion rials ($۲۴,۰۰۰ to $۲۶,۶۰۰) in Iran — depending on the options offered. Earlier, local media outlets quoted IKCO chief Hashem Yekkezare as putting the vehicle’s price at around ۷۵۰ million rials ($۲۰,۰۰۰).
Low Quality Cars Dominant
The ministry has also reported auto output numbers that indicate local automakers produced ۱۷۲,۰۳۳ cars plus light and heavy duty vehicles during the two months.
According to the statistics, cars had a ۹۴% share in the overall domestic production with ۱۶۲,۵۱۶ units.
It is reported that three models are dominant having ۵۵% share. IKCO and SAIPA, the two main carmakers, produced ۸۷,۲۸۲ units of the three models during the period.
The three models, which hardly made a single star in the latest ranking by Iran Standard and Quality Inspection Company (ISQI), are Peugeot ۴۰۵, ۲۵-year-old Kia Pride model and the locally designed Samand.
This is while the head of ISQI Nayereh Piroozbakht, recently issued an ultimatum to the car companies to improve quality or face consequences. “Production of vehicles which fail to comply with the ۸۳ automotive standards will be halted by the end of ۲۰۱۸,” she warned.
The automakers have so far refused to budge and have done nothing to upgrade or suspend the production of poor quality cars. However the reported statistics indicate decrease in the companies’ output of the models notorious for poor quality, mileage and safety.
The cars produced by the two companies have engines that are no more in use in most countries with strict environmental regulations.
IKCO
Iran’s largest automaker Iran Khodro was able to increase by ۸.۷% its total output during the two months compared to the same period in the previous year.
However, IKCO has seen a dramatic decline in production of pickup trucks and heavy duty vehicles with the two respectively recording ۶۴% and ۹۶.۲% y/y fall.
Having a ۵۳% share of the industry, the company produced ۸۶,۴۷۳ cars during the period. IKCO’s low quality cars, namely Samand and Peugeot ۴۰۵ still have a ۴۴% share in the company’s production rate. During the same period last year, the two models had a ۵۸% share of the company’s output.
Furthermore, IKCO has decreased the production of its Peugeot ۴۰۵ and Samand. The company produced ۳۸,۴۱۴ units of the two models during the period, indicating a ۱۴% y/y fall.
The ministry report also said that a production plant in central Semnan Province — officially launched in April by President Rouhani has so far produced ۵۰۷ units.
The production plant Farda (tomorrow in Persian) built at a cost of ۱۰ trillion rials ($۲۶۶ million) by an unidentified private investor, is listed as an IKCO asset. The factory is producing the Samand models.
SAIPA
This company, the second largest automaker, recorded ۱.۵% y/y growth in its production rate in the two months with the number reaching ۵۷,۷۲۱ units.
Furthermore, the company has decreased the production rate of its outdated substandard Pride. SAIPA produced ۱۰,۸۶۲ Prides during the period, ۲۲.۲% less compared to the same period last year.
It’s not clear whether the move is SAIPA’s response to widespread calls for shutting down the production line of the obsolete and inferior model.
Other Classes
Two other sectors were also in negative territory. According to the report, during the two-month period, local firms produced ۷,۶۶۷ pickup trucks and ۱,۴۷۶ heavy duty vehicles which respectively indicate ۳۳.۹% and ۵.۴% decline.
After cars, the largest share of automotive output is related to pickup trucks with ۴.۴% share of the industry.
Pickup trucks are followed by heavy duty vehicles which have a meager share of less than ۱% with ۱,۴۷۶ units produced during the period.
Source: financialtribune.com
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