SAIPA has signed a memorandum of understanding to export a total of 200,000 passenger cars to Venezuela in five years.
SAIPA’s CEO Mohammad Ali Teymouri, who traveled to Latin America with the delegation accompanying Iranian President Ebrahim Raisi, stated that he attended talks for developing joint automotive cooperation with Venezuela.
“During the two-day visit of the president to Venezuela and before the start of his visit to Nicaragua, a memorandum of understanding was signed with the Venezuelan government for the production and export of 200,000 automobiles to this country over the next five years and the revival of Venirauto automobile factory under the management of SAIPA,” Teymouri was quoted as saying by ISNA.
According to the CEO of SAIPA Automobile Group, 2,000 SAIPA automobiles will be exported to Venezuela in the coming months.
“SAIPA's after-sales service network has been activated in the major cities of Venezuela. Previously, SAIPA had eight after-sales service agencies that were not active, which will be expanded in the coming months,” he said.
While emphasizing that the visit to Latin America was aimed at developing joint cooperation and increasing trade exchanges, Teymouri said Venirauto automobile factory was established in 2006 with a 36% share held by the Automobile Development Company (comprising Iran Khodro and SAIPA) and 64% belonging to a Venezuelan company affiliated to the Ministry of Industry and National Production, which continued operations until the fiscal 2015-16.
“The company became inactive from the fiscal 2015-16 to fiscal 2021-22. But with the efforts of the current Iranian government to restore relations with Latin American countries, joint cooperation was restarted in the fiscal 2022-23. The annual production capacity of this company working three shifts is 30,000 units,” he said.
The SAIPA chief noted that following negotiations with the Venezuelan government, the two sides signed an agreement to start production in one of the inactive factories of this country, which used to produce commercial and passenger cars, as well as vans.
“The financing of this strategic project will use the Venezuelan government's credits,” he added.
Teymouri stated that with the establishment of commercial and passenger car production lines in Venezuela, exports to other Latin American countries could also be pursued.
“The export of complete knocked-down parts to Venezuela is one of the other plans that SAIPA has placed on its agenda,” he said.
President Raisi was visiting Venezuela on the first leg of his tour of three Latin American states.
“We have decided to increase cooperation between the two countries. The volume of trade exchanges between Iran and Venezuela will be increased to $10 billion in the first stage, which can be raised to $20 billion in the second stage,” he said.
During Raisi’s tour, Iran will sign various cooperation agreements and memorandums of understanding with the three Latin American countries.
Iran has close ties with many Latin American states in different fields and seeks to deepen those relations.
SAIPA Output Soars by 82.5%
SAIPA Automotive Group has published detailed statistics from March 21 to May 28, alongside the release of the total vehicle production report, which indicate a substantial jump in output.
A total of 86,618 vehicles were produced by SAIPA during the period, registering an 82.5% increase compared with the corresponding period of last year, the company’s CEO said.
“Since good agreements have been made between the Ministry of Industries, Mining and Trade and the Central Bank of Iran regarding the supply of foreign currency to car manufacturers and parts producers, vehicle output has increased,” Mohammad Ali Teymouri was also quoted as saying by Khabar Khodro, a Persian website that covers automotive news.
“By increasing production, SAIPA aims to help regulate the car market, reduce the gap between factory and market prices, and fulfill the obligations assigned to it in the integrated car supply system. Production growth achieved since the beginning of this year [March 21] indicate that the component supply chain, currency supply process and production lines are being operated under suitable conditions.”
The CEO noted that the production of 9,233 Shahins registered the highest year-on-year growth of 128% during the period compared with 4,024 in the same period of last year.
“It was followed by SAINA, as its output increased by 127% to stand at 20,630 from 9,089 in the corresponding period of last year. A total of 38,704 QUIK models were produced, up 67% compared with 23,120 in the same period of the fiscal 2022-23,” he said.
“The output of SAIPA 151 increased by 46% from 6,117 in last year’s same period to 8,961 in the fiscal 2023-24.”
According to Teymouri, the production of SAIPA Diesel registered a 56% growth during the period, as the company produced 417 heavy vehicles from March 21 to May 28 while its output stood at 268 units in the corresponding period of last year.
“The rise in the quantity and quality of car production is in response to consumer demand, therefore, the process of optimizing production and eliminating any possible defect is followed seriously by the company. According to the new year’s slogan of ‘Inflation Control, Production Growth’, SAIPA is using its full potential to set records in production,” he said.
