Iran Khodro Company (IKCO) delivered 100,000 vehicles in the last two months of the fiscal 2021-22 (Jan. 21-March 20), the company’s vice president for marketing and sales said.
Babak Rahmani added that 20,000 vehicles were delivered in less than 20 days during the Iranian New Year holidays (March 16-April 2), according to the latest IKCO report, Donyaye Khodro reported.
“From Jan. 28, the daily production of Iran Khodro increased and by March 20, we delivered 100,000 vehicles to customers. This is while on Jan. 21, the number of incomplete cars was more than 82,000,” he said.
Rahmani, who is also the IKCO spokesman, said the unprecedented increase in supply in the last days of the fiscal 2021-22 (ended March 20), caused the prices of many Iranian cars to decline in the market.
He added that according to the current procedures in Iran Khodro Industrial Group, all the incomplete cars are at the company’s production sites across the country and have reentered the production cycle for completion and delivery.
“On April 2 alone, about 4,500 vehicles were completed. By speeding up the process, we have been able to deliver 20,000 vehicles to customers during March 16-April 2,” he said.
Rahmani considered the reduction of overdue liabilities as one of the recent achievements of Iran Khodro Company.
“As the process of completing unfinished vehicles accelerates, the number of cars in the market has increased, such that car shipments in the last two months of last year increased by 17% compared to the previous 10 months,” he said.
Mehdi Khatib, IKCO’s CEO, announced that the obligations to customers will be updated in the near future.
“Speeding up the process of completing and delivering the car has been undertaken, so that the daily delivery reached 4,000 units, of which more than 1,000 units were delivered in person and to customers who referred to Iran Khodro’s production sites,” he said.
IKCO plans to produce 750,000 vehicles in the fiscal 2022-23 (started March 21), including 725,000 passenger cars and 25,000 commercial and heavy vehicles, which will go beyond the president's order to increase production by 50%.
With a significant increase in production, car lotteries are expected to end.
Car Lotteries Expected to End
With the rise in vehicle production in the current fiscal year (started March 21), the termination of car lotteries is possible, according to the CEO of Iran Khodro Company.
Khatib added that production growth is estimated to reach 350%.
Referring to the unexpected visit of President Ebrahim Raisi to the main parking lot of Iran Khodro on April 2, Khatibi said there were 12,000 vehicles in the company’s parking lot on March 2, which have been completed and delivered to customers.
The IKCO chief assured that with the significant increase in production, car lotteries are expected to end within the next three months.
“The 350% growth in Iran Khodro Diesel will create jobs for 4,000 people and the production of 750,000 vehicles will lead to the induction of 25,000 new workers in Iran Khodro Industrial Group and at parts manufacturers and suppliers,” he said.
Khatibi announced that the production of Samand and Peugeot 405 will be halted in the current fiscal year.
“These two products have the lowest satisfaction rate among Iran Khodro’s customers. Iran Khodro's goal is to produce modern cars with more features and boost customer satisfaction,” he added.
Claiming that more than 70% of a car’s quality pertain to the supply network and parts, the IKCO chief said, “In three short-, medium- and long-term frameworks, we have developed directives and intensified supervision to improve the quality of production lines.”
Announcing that seven upgraded products will enter the market, he stressed that projects have also been designed to produce K125 and TF21 cars in the first half of the current fiscal year.
Khatibi stated that TF21 is a class B car with modern and advanced facilities.
“The designing period for this car has been set at a total of 18 months, which is a unique development in the domestic car industry,” he said.
