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EghtesadOnline: Iran's state-owned and private carmakers missed their production target by 50,000 units in the last fiscal that ended on March 20.

According to the latest data released by local automotive website Asre Khodro, total car production hit 1.25 million during the 12 months.

However, the industry saw a 40.7% growth in auto production year-on-year, according to the Ministry of Industries, Mining and Trade.

Missing of  the target should worry carmakers as earlier in the year they had anticipated sales would exceed their initial estimates, Financial Tribune reported.

However, production delays during the year that just ended put off many from purchasing a new car for fear of getting a raw deal if something better comes along from one of the several companies entering the market, for instance Renault.

Meanwhile, logistical issues have also dogged carmakers rushing to bring out new vehicles.

In one example last autumn Renault announced it was planning to sell the Indian-developed Renault Kwid to the local market, however, no word has been heard since the initial announcement.

The company local director, Payman Kargar, said the car would be competitively priced at the lower-end of the local offerings, around 300 million rials ($7800) placing it in competition with SAIPA's Tiba model.   

Another possible issue for the car companies is the ongoing belt-tightening by car buyers, with many still put off by high-interest rates against hire- purchase schemes.

Car companies usually charge over and above the rate of inflation for car purchases.

Just before the end of the year, the largest car group, Iran Khodro (IKCO) announced it had begun production of a Peugeot 2008 crossover as part of its joint venture with the PSA Group’s Peugeot brand.

The car is likely to cost more than 900 million rials ($24,000), which is some 20% higher than its equivalent vehicle sold in Europe.

In this year Iran hopes to produce some 1.5 million vehicles by March 2018.

Iran Auto Production (March 2016-17)
Pride 213,143
Peugeot 405 148,622
Peugeot 206 161,593
Peugeot Pars 119,230
Tiba 106,136
Samand 102,702
Renault 82,956
MVM 55,008
L90 76,200
Nasim and Saba Pride 55,218
JAC and Lifan 41,448
Dena 28,008
Brilliance 31,115
Sandero 36,249
Runna 12,253
Cerato 13,197
Pars Tondar 14,227
Dongfeng H30 11,911
Tiba X200 Hybrid 7,833
Pride Hybrid 5,347
Mazda 3 2,952
Suzuki Grand Vitara 2,645
Haima 3,687
Changan 4,686
Asa 1,080
Tiba X100 288
Iran Auto Iran auto market Iran auto industry Iran automakers Iran auto production