SAIPA Corporation plans to export 14,000 cars (3,000 QUIK and 11,000 Shahin models) to Iraq and Venezuela.
Mohammad Ali Teymouri, the company’s CEO, made the announcement during a supply chain manufacturers’ meeting on product development and production increase, Donyaye Khodro reported.
The meeting was attended by members of SAIPA Corporation’s Board of Directors, CEOs of SAIPA’s subsidiaries, deputies and managers and members of component associations, as well as the heads of component manufacturers and supply chain of SAIPA.
“These cars will be exported to these countries at the best export price and in cash, and the resulting liquidity will allow us to pay for research and development, as well as the dues of parts manufacturers,” Teymouri said.
Without mentioning a specific date, the SAIPA chief stated that the company is “committed” to exporting this number of cars to Iraq and Venezuela in the current Iranian year (ending March 2023).
Appreciating the collaboration of the company’s supply chain and parts manufacturers in increasing SAIPA’s production, he said, "With the efforts and cooperation of component companies, we managed to increase turnover to 1,900 cars per day without assembling CKD products and the production of complete cars [without a deficit of car parts] reached 100% in less than three months, which is commendable."
Teymouri noted that the key to the success of the supply chain and automotive manufacturing lies in enhancing the quality of products and accordingly, the quality of QUIK and Shahin cars has improved significantly this year following the implementation of plans in this regard.
"We have to reach a point where products do not need after-sales service for five years, which will make our products competitive in global markets. Otherwise, the after-sales costs will make the products unprofitable," he said.
SAIPA’s CEO stressed that in the coming years, the company should focus on bi-fuel and hybrid vehicles.
"As per the mandate set for car manufacturers to reduce fuel consumption of vehicles by 5% annually, the production of hybrid and bi-fuel vehicles should be seriously pursued. Accordingly, SAIPA has defined a program in the two areas and is in the process of implementing it,” he said.
"We have received a license from the National Iranian Oil Refining and Distribution Company for the production of 15,000 Zamyad pickup trucks, and we must move toward the annual production of 100,000 bi-fuel vehicles."
Vehicle Production Rises by 12%
The production of all types of vehicles (heavy, commercial and passenger) registered growth in the first seven months of the current fiscal year (March 21-Oct. 22), according to the head of Iran’s Automotive Industry Office.
While Abdollah Tavakkoli Lahijani added that the vehicles produced during the period increased by 12%, he did not mention their precise figures.
“Currently, the production of complete cars has increased in major car manufacturing companies and no incomplete cars were sent to their parking lots,” he was quoted as saying by Fars News Agency.
“In the past few years, starting from fiscal 2018-19, with the intensification of sanctions, the annual production of 1.4 million vehicles has reduced by half. Also, due to a lack of parts import, the production of incomplete cars increased.”
In the seven fiscal months, van production stood at 1,700 vehicles, up 454% compared with 300 vehicles in the previous year’s corresponding period.
The production of heavy vehicles (including mini trucks, trucks and vehicle pullers) grew by 178% year-on-year to stand at 15,893 vehicles.
Passenger car output hit 545,000 during the period under review, registering a 7% rise compared with the previous year’s corresponding period.
Tavakkoli noted that the production of pickup trucks, as well as buses and minibuses, registered a respective growth of 47% and 37% during the period.
“A total of 239,000 motorcycles were produced during the period, which is expected to reach 500,000 by the end of the year. Since motorcycles play a prominent role in air pollution, high-quality production has been place on the agenda [by manufacturers],” he added.
According to the official, vehicle delivery to customers increased by 30%, as the obligations of automakers declined.
Iran Khodro produced 234,000 vehicles during the period, while its production stood at 21,000 vehicles in the corresponding period of last year.
In addition to the two major car manufacturers, production has increased in the private sector. A total of 96,000 vehicles were produced by the private sector during the period, considerably higher than 39,000 registered in the same period of last year.
Stressing that sales have increased by 76% and 94% in Iran Khodro and SAIPA, respectively, Tavakkoli said, “SAIPA has stopped its car draw, while it is still being conducted by Iran Khodro.”
