The weekly production of commercial and passenger vehicles has reached 14,000 vehicles, according to the Iran Khodro (IKCO) Industrial Group’s deputy director for development and production.
Due to the stoppage of incomplete car production, the company’s weekly output increased in the current fiscal year’s second half (started Sept. 23).
“Production hit 10,500 units in the first week of the current fiscal year’s seventh month [Sept. 23-29] and exceeded 12,000 units in the second week of the same month [Sept. 30-Oct. 6],” Kianoush Pourmojib was also quoted as saying by Donyaye Khodro.
“IKCO’s total production of both passenger and commercial cars reached 363,726, with an average daily production of more than 2,800 vehicles.”
The official considered it important to prevent unnecessary costs, incurred by the production of cars with parts deficit, amounting to 40 trillion rials ($111.01 million) in the seven months of the current Iranian year (started March 21).
"The improvement of quality in the final audit index of IKCO’s cars produced at the Tehran site by 45% and the upturn in the audit results of the Iran Standard & Quality Inspection Company by 11.5% in the seven months of the current Iranian year [March 21-Oct. 22] are among the other benefits of stopping the production of incomplete cars,” he said.
“Based on the latest report of the Iran Standard and Quality Inspection Company, in the initial quality study index, which shows the number of defects reported by customers in the first quarter of car ownership, there has been a 13% improvement in cars delivered in the third month of this year [May 22-June 21] compared with the 11th month of the last fiscal year [Jan. 21-Feb. 19, 2022].”
Pourmojib noted that in the first seven months, 101,000 more complete cars were produced than in the same period of last year, which increased supply, quality and customer satisfaction.
“The complete car production policy generated 220 trillion rials [$610.6 million] in production liquidity, which prevented a decline in output despite the continuation of command pricing policies,” he said.
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 the fiscal 2018-19, with the intensification of sanctions, the annual production of 1.4 million vehicles reduced by half and the production of incomplete cars increased due to a lack of parts import.”
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 placed on the agenda [of 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 vehicles 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.”
