Peugeot, Citroen Will Uphold Localization Segment in Iran

Asre Khodro - The fourth edition of Iran Automotive Industry International Conference was held February 12-13 in Tehran at the iconic Milad Tower Conference Hall. On the sidelines in a panel discussion, the CEO’s of Peugeot and Citroen expressed their views on their future plans in the country.

Friday 17 February 2017 - 17:14:00

Peugeot, Citroen Will Uphold Localization Segment in Iran

Reporting "Asre Khodro", Peugeot’s Jean Philippe Imparato pointed to his company’s long land strong partnership with Iran Khodro Company.

He said Peugeot’s priorities for working in Iran are to transfer technology and make direct investment, and note that production of the Peugeot 2008 “would start before the coming Persian New Year” in March, but did not mention the price range of the new model.

Linda Jackson CEO of Citroen pointed to the framework agreement for creating a joint venture to produce Citroen cars in Iran. The deal was signed in October 2016. She added that cars will roll out of the factory in Kashan in early 2018.  

Jackson added that her company relies on “historical partnership” with SAIPA. The two partners have been working together for nearly 50 years and 2017 will mark the comeback of Citroen to Iran, she noted.

“We will be entering a new era with a 50-50 joint venture.” 

The long-term cooperation encompasses a wide range of sectors including engineering, purchasing, manufacturing, selling and after sales service, she told the panel. 

Noting that Citroen wants to shake up the rules and stand out with cars that are recognized at first sight, she said, “Citroen is a people-minded brand providing new responses to the changes in auto consumption patterns.”

The Kashan factory will be the “most up-to-date car manufacturing plant in Iran and has potential to reach the highest levels of quality.”  An estimated 30% of the products jointly manufactured at the plant will be exported in the region as per the government regulations. 

Quality control measures in factories across the world will be observed at the Kashan plant. Also the same level of customer service will be offered because product quality is not the only thing that matters, she noted.

“PSA will be making 3 Citroen models with up to 70% localization. All models will be among the new generation of cars and will be launched in Iran shortly after their global launch.” 

Committed and Dedicated

The future cars have Euro-6 standard and comply with the EU’s 2020 environmental regulations which stipulate low emissions.  

“We will set up a dedicated network selling Citroen cars and SAIPA has sole distribution rights. Sales will start with the Citroen C4. We will uphold global standards and provide efficient after sales service while providing industrial and technical expertise,” she said.

Later on in their session, they were joined by Jean Christophe Quemard PSA Peugeot Citroen’s executive vice president for Africa-Middle East.

Quemard said he has come to Iran “to show his commitment to the brand.”

When asked if US President Donald Trump’s policies and anti-Iran rhetoric will affect the course of the company’s decisions in Iran, the officials noted that their business is based on legal guidelines. The group is serious about doing business in Iran, and both parties consider this a win-win agreement.

Peugeot chief Imparato noted that customer satisfaction is a top priority for the giant French carmaker. “We must solve the faults we face to certify customer satisfaction,” he said.

“We will be transferring technology so that IKCO will be able to use it on their own.”

He noted that the cars made in Iran will have the same specs as global versions except for powertrain adaptations made for driving conditions in Iran.

“We must reach at least 70% localization and although it’s not easy it will be done,” Quemard said.

PSA Group has invested 400 million euros in the JV with IKCO to produce three  models. A similar amount has been invested in the SAIPA JV which will see three new Citroen models roll out of the factory.     

Quemard added that the cars produced at Kashan will be sent to other countries in the region. To help ensure the export plan, the three models which will be made in Iran will not be produced elsewhere in the region.

Roughly 200,000 cars will be made under the JV with IKCO and 150,000 units in collaboration with SAIPA, this shows that we are thinking long-term, he said.

Quemard concluded by saying that “we have nothing against working with private partners,” our DS brand is working with Arian Motors to distribute in Iran.



برچسب ها

PeugeotIran Automotive IndustryCitroen
مطالب مرتبط بیشتر
Iran’s Car Industry and the Localization Conjectures Automakers are forced to implement new car standards Removing some price ranges from the car market Complete privatization; First Iran Khodro and Saipa after that Construction of Chinese-Persian car in Semnan France to update firms on doing business with Iran S. Africa-Iran Business Forum Next Week Iran, Turkey to Hold Meeting of Joint Economic Commission Next Month French Businesses, Officials to Preempt American JCPOA Walkout Lack of Iran Khodro Capital Impedes Peugeot Plans Auto Parts Makers Demand Tougher Regulations on Imports Istanbul Automechanika Conference with the participation of the senior director of the exhibition European carmakers on the road back to Iran after nuclear deal Car from the new minister's perspective Iran is the place for peugeot to jump the platform As Iran Sales Grow Peugeot Profits Rise to €2 billion PSA First-Half Profit Jumps as It Sells More Expensive Cars Peugeot's China, Europe sales decline offset by Iran Iran JV to Launch Peugeot 508 Iran Automakers Need Logistical Spread Iran Auto Output: All That Clamor for Naught France’s Peugeot, Total Looking for Stronger Presence in Iran French Leverage in Iran Auto Industry Iran Industrial Agency Kicks Starts Another Car Factory Iran Automotive Production Up 20% y/y With Sanctions Behind, Iran Looks Ahead Iran Carmakers Obliged to Offer 2-Year Guarantees Iran Auto Companies Not Raising Prices Peugeot 2008 Production Line Launched in Iran IRAN - Peugeot Team Tours Tabriz-Based Manufacturers of Car Spare Parts Iran to hit two car industry accords soon Peugeot Team Tours Tabriz-Based Manufacturers of Car Spare Parts Turkey keen on investment in Iran's auto industry PSA to carry out Iran plans despite US threats Car Thieves Love Iran-Made Peugeots Iran to release Euro V passenger cars next year Production surges in Iran's car industry IDRO signs 19 MOUs with giant automakers in post-sanction era Iran Khodro Group Retains 39% Market Share Iran to sign 5 auto deals with intl. companies by Mar. 20 Peugeot Deliveries Propelled by Sales in Iran 40.9% Jump in Iran Car Production y/y Iran talks with Germany’s VW to produce passenger car Car Import only through Investment Iran’s Vehicle Initial Quality Study Released Iran has potential to be top-10 auto market by 2020 Iranian, Turkish companies discuss auto parts Coop. The 4th Vehicle Conference "Sales and After-sales Service Approach” Iran Car Sales Slump Despite Loans Iran’s Auto Import Report by MSD Iran Targets 80% Auto Localization Effects of Automotive Ties With China PSA SAIPA finalise joint-venture in Iran Faurecia builds on Iran ties to secure major deals - CEO Renault signs MoU with Iran to create new joint venture Peugeot targets 150,000 vehicle sales in Iran in second half Peugeot to try for making Iran its manufacturing hub in Middle East, Africa Iran to ink new deals with foreign automakers Pakistan-Iran cooperation in auto sector discussed Iran to open car factory in Azerbaijan Auto Sector Recovery to Buoy Steel Consumption IKCO, Peugeot to release 1st joint product within months New Automotive Decisions Announced Iran's Automotive Advantages Our new contract is different Friends with many benefits Peugeot-Citroen announces €400 mln venture with Iran Khodro PSA Group signed the final contract with its Iranian partner Encouraging foreign investment to revitalize Iran’s car industry - expert Iranian car output down 2.5% Y/Y Algeria-Iran: 15 cooperation and agreements for automotive industry Automotive Targets Highlighted How to seize Iran’s automotive opportunities VW In Iran Iran ranked 13th in world passenger cars sales of 2015 Bavaria eyes major auto supplier potential with Iran Plans Devised to Make Iran Region’s Top Automaker: Minister Iran Seeks Foreign Partnerships to Boost Auto Industry Our new contract is different Volvo on the Final Decision to Manufacture Car in Chabahar 3rd Iran Automotive Industry Int'l Confab opens in Tehran Iran Inks 3 MoUs with Foreign Carmakers Iran signs three deals with foreign automakers Iran to become a hub for automotive manufacturing: OICA President Iran, Germany Ink MoU to Boost Cooperation in Automotive Industry How Iranian Cars Are Viewed Around the Region Peugeot to Compensate for Iran’s Losses in New Contract: Minister Iran says Peugeot would pay compensation for withdrawal during sanctions Minister Calls for Japanese Automakers’ Investment in Iran Iran seeking Japanese investment in autos, water Iran in Talks with Germany, Italy to Boost Cooperation in Automotive Industry French car-maker Peugeot returns to Iran Peugeot to fully recompense Iran FCA, PSA, Renault eye deals as Iran president tours EU Iran's President says Peugeot, Renault deals possible on Europe trip Peugeot likely to finalize Iran deal Wed. Iran Khodro, Peugeot Reach Preliminary Deal to Produce Cars Three Europe carmakers to return to Iran soon Iran to become world's 8th automotive manufacturer Iran suspends car loan programme on soaring demand Iran to export 30% of domestically produced cars French firms trail in economic rush to Iran - executive Iran interested in cooperating with German, Italian carmakers Nematzadeh defends automotive sector French carmakers duel over Iran Changing Automotive Perception Italy to broaden cooperation on auto industry with Iran Iran: The next automotive hotspot in Middle East? Iran's car market ready to zoom in on the action Japan explores opportunities in Iran's auto industry Thailand hopes for boost in trade with Iran after sanctions get lifted Peugeot faces snub for return to Iran
Back to top