The total number of vehicles (including heavy, commercial and passenger cars) produced in the 10 months ending Dec. 21, 2022 has grown by 20% compared with the corresponding period of last year, according to the latest data released by the Automotive Industry Office of the Ministry of Industries, Mining and Trade.
Vehicle production amounted to 994,156 units in the first 10 months of the current fiscal year (March 21-Dec. 21, 2022), registering a 20% growth compared with 831,576 in last year’s same period.
A total of 116,826 vehicles were produced in the current fiscal year’s 10th month (Nov. 22-Dec. 21, 2022) to register a 32% growth compared with 88,288 units in the same month of last year, IRIB News reported.
Apart from the production of these vehicles in a 10-month period, 105,796 vehicles were completed and supplied to the market in the 10 months ending Dec. 21. All in all, domestic vehicle delivery grew by 32% during the period compared with last year’s same period.
Passenger car output hit 826,470 during the period under review, registering a 15% rise compared with 752,313 cars in the previous year’s corresponding period.
Passenger car production amounted to 101,211 units in the 10th fiscal month, registering a 30% increase compared with the same month of last year.
The output of pickup trucks reached 100,836 vehicles, registering a 51% YOY growth compared with last year’s 66,778 vehicles.
Pickup truck production stood at 12,041 in the 10th month, registering a 49% growth year-on-year.
Van production amounted to 2,784 vehicles during the period, up 277% compared with 738 vehicles in the previous year’s corresponding period.
The output of vans amounted to 267 units in the 10th fiscal month, registering a 40% increase.
Minibus and middle bus production stood at 849 vehicles, showing a rise of 11% from last year’s 766 vehicles.
The monthly production of these kinds of vehicles stood at 80 vehicles to register a 31% decline YOY.
The production of buses hit 1,127 vehicles in the period to register an 88% growth compared with 599 vehicles in last year’s corresponding period.
The monthly production of buses increased by 105% YOY to stand at 131 in the 10th month.
The production of mini trucks, trucks and vehicle pullers grew 151% to stand at 9,678 vehicles from 3,512 vehicles in the same period of last year.
The output of mini trucks, trucks and vehicle pullers stood at 3,132 vehicles in the 10th month, registering an 80% growth year-on-year.
Statistics concerning the production of all types of vehicles in the 10 months indicate that vehicle production continued its increasing trend that started in the fiscal 2019-20 when total vehicle production stood at 671,435.
In the current fiscal year (started March 21), the domestic automobile industry focused on completing cars with deficit parts, but still output surged. Nevertheless, experts believe that achieving the annual production of 1.6 million cars will not happen anytime soon.
In the Automotive Industry Transformation Exhibition, held a few months ago in Tehran, manufacturers unveiled their latest achievements in the form of concepts and prototypes, in cooperation with the Ministry of Industries, Mining and Trade.
The strategic alliance of car manufacturers in the joint use of some domestic production platforms and sites, Iran Khodro's use of SAIPA's research center, SAIPA's employment of Iran Khodro's driving forces, integration of after-sales services and assistance networks, cooperation in the production of electric cars and synergy related to logistics, transportation and supply chain were the main results of the ministry’s initiatives concerning domestic automakers.
Import of Used Vehicles Next Year
The Majlis Joint Commission has approved the import of used vehicles, including passenger cars, tractors, trucks, vans, buses and minibuses, under five to eight years in the next fiscal year (starting March 21, 2023).
The proposal, incorporated in the section on automotive development in Note 6 of the budget bill, was earlier approved by the Majlis Industries and Mines Commission.
This issue will be officially approved when the articles of the budget bill for the fiscal 2023-24 are presented in an open session of the parliament, Donyaye Khodro reported.
Some experts claim that the import of used vehicles can help regulate the market while others oppose this plan and believe that used cars are not economically viable, because the country of origin wants to export them for the same reason.
According to Hassan Qazian, an automotive expert who supports the plan, the import of used cars can help reduce prices only if brokers and profiteers are eliminated.
“The domestic car market has been awaiting the arrival of newer models of foreign cars for several years. But since the USD rate has exceeded 400,000 rials and the amount of taxes, customs duties, etc. have increased, imported new foreign cars cannot cost less than 10 billion rials [$25,000] under the current conditions. This figure has been estimated by considering the lowest possible prices and costs; therefore, new cars with higher prices will cost more in the domestic market,” he said.
“This is while used cars in a good condition can be bought at lower prices. Based on this, the import of foreign used cars in good condition can greatly reduce the price range of imported cars.”
The expert noted that new cars cost upwards of $20,000, but can be imported for under $10,000 as used vehicles.
“The import of these vehicles can help reduce prices in the domestic market only when the import of passenger cars is not handled in the same way as the import of used trucks, which was supposed to facilitate the purchase of a used truck for people who had a dilapidated truck and could not afford a new truck. But due to the presence of brokers and profiteers, and the lack of proper planning and management, imported used trucks are currently priced higher than new domestic vehicles,” he said.
Qazian said in the absence of proper management, the import of used passenger cars is pointless.
“If we are going to import used cars without a plan and without a law or legal framework, the import will not affect the market and importers may simply waste their money,” he said.
“However, if the rules and regulations for the import of used cars are clear from the beginning and there is coordination between all related organizations, the car market will definitely benefit from it and we will witness a decline in prices.”
