EghtesadOnline: Despite the new US sanctions and economic challenges Iran is facing, Chinese carmaker Chery, is not only sustaining ties with the country but has also launched a new model in the fledgling auto market.
During a bash held in Tehran Friday, Chery unveiled a new sedan model Arizzo 6. A press conference was held on the sidelines where Chery deputy chief Xu Qing Song and his local managers outlined future plans, the auto website Asre Khodro reported.
Established 15 years ago under the brand name Modiran Vehicle Manufacturing Co (MVM), Chery offers a wide range of cars in Iran. Initially, its vehicles were offered with the MVM badge. Since 2015 its own logo is also used in Iran, according to Financial Tribune.
Pointing to the company’s long presence in Iran, Xu said, “Over the years, Iran’s auto industry has seen numerous ups and downs, But we never retreated.”
The senior official added, “Over the years we introduced 10 new models and since 2015 strived to introduce at least two models in Iran every year.”
The company has reportedly sold 400,000 vehicles so far in Iran.
Xu added that currently, almost 80% of the parts used for the production of Chery Arizzo 6 in Iran are imported. “We are looking for local partners capable of making parts. The share of domestically-made parts in Arizzo 6 will increase to 40% over time.”
MVM Director Bahram Shariat was also present. He said, “Due to unjust US sanctions our production rates have declined. Annually we can produce 160,000 cars, but the actual output is significantly lower.”
According to Industries Ministry data, during the past fiscal that ended in March 2018, Chery made 70,128 cars in Iran, which was 27.5% higher compared to a year earlier.
During the past fiscal, the company set up new facilities in Iran to augment production. However, after the US imposed new sanctions it is facing an uphill battle to sustain operations in Iran.
Over the nine months to December 2018, Chery’s production rate plunged to 31.4% year-on-year in Iran. During the period the firm made 36,072 cars in Iran, significantly lower than 52,572 units made last year.
In addition to the recently unveiled Arizzo 6, nine models are offered by the firm in Iran. Which come with either Chery’s badge or MVM’s logotype. The models are Arrizo 5, Tiggo 5, and Tiggo 7 which come with Chery’s badge along with MVM 110S, MVM 315, MVM315H, MVM550, MVMX22, and MVMX33 which carry the MVM logo.
The Arizzo 6 costs 2.9 billion rials ($24,550) in Iran. The model which is better known in global markets as Chery Arrizo GX is a compact sedan that made its debut in the 2016 Beijing Auto Show.
It is based on the Arrizo 5 which is already available in Iran. Arizzo 5 goes for 1.9 billion rials ($16,100).
In global markets, Arrizo 6 is priced between 79,900 yuan ($11,850) to 106,900 yuan ($15,850).
Equipped with a 1.5-liter turbocharged engine that churns out 147hp of power and 210Nm of torque, Chery Arrizo 6 comes with a 9-speed CVT gearbox. The car can reach from 0-60km/h in less than 9 seconds.