After announcing the decision to lift the car import ban, the government is encouraging the import of more economical vehicles.
"Under the new regulations, in addition to the top two deciles, car imports have also been considered for low-income deciles. Special incentives, including lower tariffs, will be extended to the importers of such cars," Manouchehr Manteqi, deputy industries minister for transportation affairs, was quoted as saying by Donyaye Khodro.
"People who observe the production processes and transfer knowledge can enter the import business," he said.
“The government’s new regulation has focused on the issues of after-sales services and technology transfer alongside imports.”
Manteqi noted that the import of special cars, especially electric vehicles, has received special attention.
“Another issue in this regulation is that anyone investing in the car value chain [parts and components] can import a car in return for the investment he makes in the car value chain. Also, those who export a range of specific products can import in exchange for export with the permission of the Central Bank of Iran," he said.
"The range of products that most customers use can also be imported, provided that they have a higher quality than domestic products. So, domestic automakers will have to increase the quality of their products if they want to compete with them."
Manteqi stated that due to the 40% increase in exports last year, currency restrictions have also been lifted.
Referring to the lifting of car import ban, Minister of Industries, Mining and Trade Reza Fatemi-Amin said, “Following the removal of export barriers and the rise in exports, which helped solve the problem of the country's foreign currency balance, we no longer need to continue the ban on car imports and called for the liberalization of imports to create a competitive market. By holding several meetings with relevant authorities and the Cabinet, we seriously pursued the liberalization of car imports away from the media hype.”
Fatemi-Amin explained that finally, with the submission of expert reports and the presentation of logical arguments, as well as the constant follow-up, the ministry’s proposals were approved by the Cabinet.
Higher Production Planned
The Ministry of Industries, Mining and Trade plans to meet car demand by placing imports and higher production on its agenda, the head of the ministry’s Automotive Industry Office said.
“In the current fiscal year [March 2022-23], 1.6 million vehicles will be produced, of which 1.4 million will be based on domestic platforms. Increasing the production is the most important short-term strategy, provided that sanctions don’t trigger new developments,” Abdollah Tavakkoli Lahijani was also quoted as saying by IRNA.
The official noted that rising car production will help eliminate car lotteries, pointing out that the lottery for SAIPA’s Shahin has been cancelled.
“Iran’s two largest automakers are now working to produce economy cars and a consortium of component makers has been formed to assist the initiative,” he said, while pointing out that supply chain financing will reduce the automakers' overhead costs.
Lahijani said promoting direct purchase from top-tier manufacturers, designing new cars, reducing logistics, increasing cooperation between carmakers and forging synergies could prepare the ground for the rapid production of economy cars.
“Automotive standards are not difficult to uphold and they are being observed in the new platforms,” he added.
The new platforms have been designed in a way that the enforcement of standards will help lower prices when the mass production of cars begins.
According to the official, the Trade Promotion Organization of Iran has studied potential export markets and the vehicles built on the four main platforms will be exported to target countries.
“The Fourth Industrial Revolution has helped develop the automotive industry with the expansion of the four major fields of electrification, connected cars, self-driving cars and shared transportation,” Lahijani said.
“At every turn, some new actors emerge and for countries like Iran and domestic automakers, this is a historic opportunity to make its presence felt with the help of knowledge-based companies.”
Sale of Shahin Underway
SAIPA Automotive Group has announced that the delivery time of Shahin is a maximum 90 days and in case of a delay, a compensation equivalent to 36% of the annual profit (3% monthly) will be calculated on a daily basis.
Shahin can be considered the first positive step of SAIPA to repair its reputation after years of Pride production and is considered a turning point in the automaker’s history, the news portal of Donyaye Khodro reported.
The car was designed at a time when the domestic automotive industry was facing tough US sanctions and problems related to supply chain. This shows SAIPA's determination to produce a modern car with a completely different design. It intends to further incorporate changes and updates in Shahin and the Aria Crossover.
SAIPA's main efforts could be seen in Shahin that complies with safety standards, including airbag, crash testing and pedestrian collision standards, which have been obtained from a reputable European institution. In fact, it is the first Iranian car manufacturer to fully show the car’s development and safety features by publishing videos and the results of crash and airbag tests.
Shahin uses a turbocharged M15GSI engine. The base version of this engine had previously been used on SAIPA X 200 platform products (Tiba, Saina and Quick), but to fit the Shahin’s weight of 1,250 kg, some parts have been replaced, modified or upgraded.
The car’s engine is also equipped with electric throttle, VVT system and Euro 5 emission standards that ensure lower fuel consumption and vibration with more acceleration and power.
