Iran Auto Market H1 2017: Higher Production, Sales
EghtesadOnline: During the first six months of the current fiscal which started in March Iran automotive industries registered a 10% year-on-year increase in sales.
According to the latest statistics released by the Security and Exchange Organization, major domestic carmakers sold 603,096 vehicles during the period earning 173 trillion rials ($4.3 billion).
During the six months, the automotive industry saw a 17.9% y/y growth in production — 684,300 cars, trucks and utility vehicles were manufactured.
Data released by the Ministry of Industries indicates that passenger vehicles production, as usual, dominated the sector with 643,321 cars manufactured, according to Financial Tribune.
Furthermore, while van production was up 161% y/y reaching 350 units, the output of pickup trucks fell sharply to 32,605 from last year’s 39,306 — down 17% YoY.
Bus and minibus production also shot up 60% compared to the same period last year reaching 1,317 units.
Iran Khodro with a 49.9% share of the domestic markeat, produced 321,069 cars during the six months — up 15.8% compared to the same period a year ago.
The company’s sales were up 5% reaching 303,735 vehicles and generating 95 trillion rials ($2.4 billion).
Locally manufactured Peugeot models led IKCO production and sales. The company produces Peugeot 405, 206 and 2008 under license from the French auto giant.
Data says 205,509 units of Peugeot cars were produced by IKCO and 197,539 were sold at a total cost of 58.9 trillion rials ($1.4 billion).
After Peugeot the locally-designed Samand had the biggest share in IKCO sales with 48,339 units sold for 12.9 trillion rials ($327 million).
Renault’s Logan, locally better known as Tondar 90, also has a significant share in IKCO production and sales with 23,452 units produced, and 21,576 sold with the total value of 7.6 trillion rials ($192 million).
The company’s subsidiary Iran Khodro Diesel, which is in charge of production of utility vehicles and pickup trucks, has produced 4,676 units and sold 3,796 generating 1.5 trillion rials ($39 million).
SAIPA Group (including SAIPA, Pars Khodro and Citroen) with 43.6% share of the industry produced 262,977 vehicles during the six-month period — 22.2% up y/y.
The country’s second auto company sold 195,130 cars earning 47.7 trillion rials ($1.2 billion) — up 13% YoY.
Its low cost Pride still leads the sales chart with a 58% share — 114,423 units sold, generating 19.9 trillion rials ($505 million). Pride is the cheapest car available in Iran and is almost always singled out for criticism due to low quality.
First models of Pride rolled out of SAIPA assembly lines in 1993 but the car has never been able to meet acceptable standards. Its sales and production have not observed any significant change, contrary to claims by company officials that SAIPA is reducing Pride’s share in the overall output.
SAIPA also produces several models in collaboration with Chinese carmakers Brilliance and Changan. The models have a meager share of 4% in the company’s sales, generating 4 trillion rials ($103 million).
The company’s subsidiary SAIPA Diesel, which produces heavy-duty vehicles and pickups, sold 1,304 units making 2.5 trillion rials ($65 million).
The third-largest automaker Pars Khodro accounted for 17.6% of total produced cars, producing 106,470 vehicles during the half-year period.
Producing a jumble of cars already manufactured by IKCO and SAIPA, Pars Khodro sold 100,435 vehicles during the period, generating 26 trillion rials ($665 million).
Pars Khodro produces two Renault models which dominate the company’s sales with 44% share. Selling Renault Logan and Sandero, Pars Khodro earned 17.3 trillion rials ($440 million).