The CEO of Iran Khodro Company (IKCO) has outlined the major domestic automaker’s performance in a recent meeting attended by officials and the company’s managers.
Mehdi Khatibi placed “the saving of 21 trillion rials ($54.48 million), a 25% increase in the quality of products and the identification of production bottlenecks” on top of his list.
"Currently, the production of complete cars at IKCO is continuing in higher numbers and under stable conditions,” he said.
"The production of complete cars should have been accomplished before the international sanctions, but it is being carried out under the current difficult economic conditions caused by sanctions."
Khatibi noted that since the beginning of the current fiscal year’s second month (April 21), 100% complete car production has been achieved in this industrial group.
“With the continuation of this trend, we are now witnessing stability in car production. At present, less than 5% of IKCO's products are assembled and more than 95% pertain to the company's domestic production,” he said.
"From March 21 to Dec. 21, IKCO’s turnover has increased by 133,000 units compared with the same period of the previous year. We estimate that the turnover of the fourth quarter [Dec. 22-March 20, 2023] will surpass that of the third quarter [Sept. 23-Dec. 21]."
Khatibi added that the target is to achieve a turnover of over 60,000 units in the ninth fiscal month (Nov. 22-Dec. 22) and to increase the monthly production to 70,000 units for the production to hit 210,000 units this winter (Q4 of fiscal 2022-23).
Announcing that complete car production has saved more than 20 trillion rials, the IKCO chief said, "Although the production of complete cars is the need of automobile industry, we must also increase the capacity of supply network and the stocks of raw materials and parts, which we have not yet reached. Currently, parts are supplied daily and even hourly."
Khatibi said the share of manpower costs in this industrial group is about 9% of the total production costs.
“I hope that with the efforts of IKCO’s employees, parts manufacturers and the assistance of the Ministry of Industries, Mining and Trade, the production of complete cars will continue and we will see the supply of more economical cars with a lower final price and at a fixed price,” he added.
IKCO, SAIPA Open 2nd Joint Agency for Sales, After-Sales
The second joint agency of IKCO and SAIPA was inaugurated in the presence of the CEOs of the two automakers.
During the inauguration ceremony held on Dec. 8, Khatibi said, “Today, we are witnessing the opening of the second joint sales and after-sales services agency of Iran Khodro Industrial Group and SAIPA in line with the strategic alliance of the two major automakers. In the future, we will have many such joint programs and collaborations,” Eghtesad Online reported.
“About a month and a half ago, the first joint agency of the two automobile groups was opened by SAIPA,” he added.
Khatibi stressed that the alliance pertains to sales and after-sales services, logistics, research, driving forces and parts manufacture.
According to Mohammad Ali Teymouri, CEO of SAIPA, the strategic alliance between SAIPA and Iran Khodro has had many benefits for customers in the past few months.
Teymouri noted that the alliance in the production and supply chain has great benefits for the two car manufacturers.
“This alliance has been established with the cooperation of two automakers in a short period of time, but in the next few years, in addition to joint ventures in producing parts and operating agencies, the two automakers also plan to launch the joint production of vehicles,” he said.
“The biggest advantage of this strategic alliance is that it will help reduce car prices, increase quality and deliver the products on time.”
The SAIPA chief added that their strategic alliance has had a good impact on car production.
“Last year, there were more than 160,000 incomplete cars in the parking lots of the two car manufacturers. Currently, there aren’t any incomplete cars in their parking lots. With regard to car delivery, SAIPA has delivered 360,000 cars from the beginning of the year to Dec. 7 and 40,000 cars are in the process of delivery,” he said.
Teymouri said Iran Khodro Industrial Group has also delivered 420,000 cars during the same period and 40,000 cars are in the process of delivery, which together broke the delivery record of last year.
