Iran’s largest automaker, Iran Khodro, is set to expand its presence in the Iraqi market by exporting vehicles equipped with automatic transmission.
According to IKCO Press, in the first phase, the company will send 300 units of locally manufactured Peugeot 405 with automatic gearbox to Iraq before the end of the current fiscal (March 20).
Hassan Golchubian, IKCO’s exports director for the Middle East and Africa, said Iraq is one of the major export destinations of IKCO.
The company seeks to gain a foothold in the Iraqi market, as different automakers are making investments in post-invasion Iraq.
However, the government in Baghdad has set import tariffs for motor vehicles at 8-10% and for auto parts at 15%. In the past, importing car and parts into Iraq was tariff-free. The imposition of import tariffs hampered Iran’s automotive exports to the country, slashing it by half during the past fiscal that ended in March 2017 compared to the year before.
Golchubian said talks are being held between IKCO and Iraqi officials on tariff rates and he is optimistic that the Iraqi government will agree to reduce the import tariffs.
IKCO hopes to expand its exports in the neighboring countries by offering a wider range of products, incentives and quality after-sales services.
Iraq is Iran’s biggest market for exporting vehicles. IKCO and SAIPA, Iran’s two largest automakers, have been exporting cars to the neighboring country for years.
Earlier, the two major automakers displayed their products at an exclusive Iranian trade and industrial exhibition in Iraq from February 12 to 15.
More than 100 Iranian companies active in industrial, commercial and engineering sectors participated in the Iran Exclusive Commercial and Industrial Exhibition held at Baghdad’s International Exhibition Center.
SAIPA exhibited Tiba, Tiba2, Ario, Quick, Saina, Pride, the Chinese pickup RICH, SAIPA News reported. It also offered a special sale for several models, including Pride ($6,800), Ario ($11,800), Tiba ($7,100), Saina automatic ($10,400), Saina manual ($8,200) and Tiba2 ($8,200). The exhibition offered vehicles at prices slightly lower than those in the Iraqi market.
IKCO presented its Dena Plus, Soren, Haima S5, Peugeot 405, Peugeot 207 and Peugeot 2008.
