Bahman Group to Launch 3 New Models in Iran

Bahman Group signs deal with long-absent Borgward for two new SUVs
Iran’s car market is getting overcrowded with the entry of Borgward.
Iran’s car market is getting overcrowded with the entry of Borgward.
The Borgward BX7 (BMW X5 size) is likely to retail in the local market at 1.4 billion rials ($37,000)

Bahman Group, previously known for producing the Mazda3 sedan, will introduce three new models into the Iranian auto market.

The Tehran-based company has been able to forge two production deals one with German-Chinese luxury automaker Borgward and the other with the Chinese company FAW, local automotive website Asbe Bokhar reported.

The hitherto unknown German car company Borgward was founded 1890. The original company, based in Bremen in Germany, ceased operations in 1961and after a 54-year hiatus came back in 2015 with the assistance of a Chinese truck maker Beiqi Foton Motor Company a subsidiary of China's BAIC.


Bahman Group is set to produce two models of Borgward SUVs, namely the BX5 and BX7.

The Borgward BX7 (BMW X5 size) is likely to retail in the local market at 1.4 billion rials ($37,000) which is roughly the same price as the recently released new-generation Renault Koleos SUV. BX7 is Borgward’s first new car in over 50 years and was unveiled at the 2015 International Motor Show.

The smaller BX5 (BMW X3 size) would likely carry a 1.2 billion rials ($32,000) tag pegging it against the Hyundai and Kia models selling in the same league.

Both models share the same architecture and the same 1.8 and 2.0-liter four-cylinder engines. Torque is distributed briskly by a seven-speed dual clutch transmission, the top-of-the-line power plant produces 225bhp, the plug-in hybrid churns out 401bhp and a combined torque of 479lb ft.

Bahman Group has not officially announced its plans for production of Borgward cars but sources close to the company have said that the first units of the model will be in the market later this year.

The company is currently testing the models and several units of Borgward cars have been seen on the company’s grounds, the original report says.

A source close to the Bahman Motor deal, on condition of anonymity, told the paper Borgward is said to invest $1.5 million in marketing the vehicles in the country.

Borgward's entry would be the latest in several carmakers converging on the Iranian market, and it would be the first time the company will come to the local market as it had no representative in the 1960s.

Besturn B30

Bahman Group will also produce FAW's entry-level Besturn B30 sedan in collaboration with Iran's Crouse Group. The model was initially produced by Chinese carmaker FAW under the name Besturn.

According to the report, a number of B30s have already been assembled from CKD units by the local car firm. The cars have received number plates and are being test driven for local conditions.

The production line of the model is being established and will be launched in upcoming months.

The car is offered with different options in the international market with the price falling between 390 to 510 million rials ($10,400 to $ 13,600).

Considering the pricing methods used by Bahaman Group the model could be priced around 600 million rials ($16,000).

The model will offer fierce competition to other Chinese sedans already present in Iranian auto market like JAC J5 which is priced about 660 million rials ($17,600).

This is the second local deal for FAW with Bahman which produced the larger Besturn B50F model with the company.

Local Partner

Bahman Group’s main local partner in the production of the three models is Crouse Group, one of the largest local auto parts manufacturers.

Found in 1982, Crouse has been growing exponentially during the last year. The company has forged two international joint venture deals with two of the largest international automotive parts manufacturer in the world, France’s Faurecia and Germany's Continental.

In July 2016 Crouse bought 62% of Bahman Group shares through a subsidiary for $460 million. There are also rumors about Crouse’s intention to develop its position in the industry, reportedly aiming to become a major shareholder of SAIPA Group.

Several joint products of Crouse with its foreign partners are likely to be used by Bahman Group in its new projects.

Meanwhile, Crouse Group is also set to produce emissions control systems in collaboration with Faurecia. The systems are based on Euro 5 standard, with first local production scheduled to start at the end of 2017. Total sales are expected to reach $53 million in 2020, representing a 25% market share.

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