EghtesadOnline: During the first four months of the current fiscal which started in March, Iranian automakers manufactured 436,136 cars and commercial vehicles, down 0.1% from last year’s 436,413 units.
According to the data released by the Ministry of Industries, car production has declined 0.2% compared to the same period last year dropping to 410,722. In the four-month period, 18,952 pickup trucks were made in Iran indicating a 3.7% year-on-year decline.
Manufacturers of trucks, minibuses and vans have fared better during the period, respectively making 5,069 (up 20.8% YoY), 653 (up 123.6% YoY) and 433 (up 65.9% YoY) units.
Defective government monetary policies, which bottlenecked raw materials’ supply chain and US pressure on Iranian carmakers’ foreign partners to terminate their operations in the country are some of the reasons behind the deteriorating state of the industry, according to Financial Tribune.
The ailing economy has also hampered activities of Iran’s largest automotive companies Iran Khodro and SAIPA.
During the four-month period, the production rate of IKCO plummeted 11.8% with the company’s total output sliding to 185,308 cars, and commercials vehicles’ output was significantly lower than last year’s 210,132 units.
Iran Khodro Diesel is the only subsidiary of the automotive company which has performed better during the four-month period with its production rate reaching 500 trucks compared to 10 units made a year earlier.
This is while all the other production facilities of IKCO have reported signs of slowdown. The firm made 182,309 cars during the four-month period down 11.4% YoY.
IKCO’s pickup trucks production plunged 41.5% during, tumbling to 2,333 units.
Furthermore, during the month ending on July 22, the company observed a sharp fall of 35.4% in its output, churning out 39,672 units, an outstanding decline compared to 61,436 cars and commercial vehicles manufactured by the firm during the same period last year. IKCO had also failed to reach its output record of the same period of 2016 when it made 52,190 units.
IKCO archrival, SAIPA has been able to keep its head above the water and even increase its production rate by 8.2% compared to the corresponding period a year ago, manufacturing 193,702 cars and commercials vehicles.
However, considering SAIPA’s production spree during recent years, with the company reporting two-digit growth rates in the past months, the 8.2% increase does not speak of promising prospects for the firm.
Moreover, during the month ending on July 22, SAIPA’s car factories’ output slumped 21.9% YoY falling to 40,284.
Just like IKCO, SAIPA makes pickup trucks. The company made 2,932 pickups during the one-month period, down 26.1% from a year ago.
Iranian carmakers have extensive ties with French automotive giants Peugeot and Renault. However after US President Donald Trump announced in May that Washington would reimpose sanctions against Tehran, the two firms announced that they would wind down or suspend their operations in Iran.
IKCO has been manufacturing three Peugeot models, namely the 405, 206 and 2008 along with Renault Logan (locally better known as L90 or Tondar 90). SAIPA also has ties with Renault and produces the Logan along with popular model Sandero.
During the four-month period, Iranian carmakers IKCO and SAIPA made 145,650 cars in collaboration with their French partners, indicating a 17.31% YoY drop.
According to the latest statistics, during the period, in collaboration with Peugeot, 117,637 cars and with Renault’s support, 28,013 vehicles were made in Iran, respectively down 12% and 34% compared to the same period of last year.
Furthermore, the report indicates that vehicles made in collaboration with French firms have a 36% share of Iranian automotive companies’ total output, this is while vehicles carrying the badge of Renault or Peugeot had a 43% share a year earlier.
Peugeot’s share also has declined from last year’s 33% to 29%, with Renault facing the same fate with its share dropping to 7% from 10% a year earlier.
Chinese automotive companies are also present in Iran. While French automotive giants are winding down their operations in the country, their Chinese rivals have revved up their activities. During the four-month period, 82,663 Chinese-derived cars were made in Iran, indicating a 27.7% YoY hike.
Vehicles designed by 13 Chinese automotive companies are offered in Iran through collaborations with local firms. The Chinese carmakers present in Iran are Besturn, Brilliance, BYD, Changan, Chery, Dongfeng, Geely, Haima, Haval, JAC, Lifan, MG and Zotye.
Chinese carmakers have been able to increase their share of Iran automotive output to 20%, up from last year’s 16%.
The leading Chinese brand present in Iran is Chery. 23,196 cars carrying the badge of the firm were made in Iran during the period, indicating a 10.59% increase.
SAIPA collaborates with Changan, Zotye and Brilliance. During the four-month period, the automotive group made 25290 Chinese-derived cars, indicating a 40.28% YoY hike.
IKCO works with Haima and Dongfeng. Through the partnerships, 15,867 cars were made, a 36.4% increase compared to the same period of last year.