Foreign Firms Dominate Tehran Auto Show

One event where the future role and strong presence of foreign carmakers in Iran was visible in more ways than one was the Tehran International Auto Show that ends on Friday.

What was more interesting was the unveiling of vehicles to be produced by joint venture companies. Several international car companies, with focus on a bigger share of the huge, but saturated, auto market have signed agreements with local firms to set up production lines and also export their vehicles made in Iran.

It is generally believed in auto industry boardrooms that every major carmaker in the world has a desire to sell in Iran. Some foreign firms have already started the partnership while others are in the pipeline waiting for the proper opportunity to make their presence known.

Iran Khodro and SAIPA already have joint venture deals with French automotive firms Peugeot and Citroen and put the crème de la crème of their products on show for curious crowds and potential car buyers in Tehran this week.

In addition to local firms and their partners, big names like Volkswagen, Borgward, Toyota, and Luxegen have also come to test the market pulse.

 IKCO

The largest automotive group is showing nine models from which eight are produced in collaboration with international firms namely France’s Peugeot and Renault and China’s Haima and Dongfeng. It is also displaying the locally- designed Dena Plus.

IKCO has a special pavilion for its joint venture with Peugeot, showcasing the Peugeot 2008 SUV and 508 sedan. Assembly lines for 2008 were officially launched in March and the vehicle has been sold for 1.2 billion rials ($30,000). The 508 will enter the market via imports. Price: 1.85 billion rials ($46,000).

The company has also put Peugeot’s Exalt concept for public view. The concept car uses Peugeot’s HYbrid4 technology that allows the driver to select the most suitable driving mode: 100% electric, petrol only, petrol-electric hybrid.

Peugeot and IKCO signed a €400-million deal in June 2016. Through the 50-50 joint venture they call ‘Iran Khodro Automobiles Peugeot (IKAP)’, three models namely Peugeot 208, 2008 and 301 will be produced in Iran.

Along with its Chinese partner Haima, IKCO has put on show a new crossover, the S5. The company is yet to announce a price for the vehicle but it is estimated to cost 800 million rials ($20,000). IKCO already sells the locally-assembled Haima S7 (an SUV) for 900 million rials ($22,500).

 SAIPA

Just like its archrival Iran Khodro, SAIPA has a pavilion for its joint venture with the French automotive giant Citroen and is showing the small city hatchback C3.

SAIPA and Citroen signed a 50-50 joint venture in late 2016 according to which the Paris-based carmaker should invest an estimated €300 million ($352 million) in Iran in the next five years. In addition to C3, another model, Citroen C4, will also be assembled in Iran. In addition to C3, the local company is also showing the C4 at the annual auto event in south Tehran.

Moreover, it has brought three new Changan cars, namely the CS75, CS55, and CS95. It is yet not certain whether SAIPA wants to sell the three sedans in Iran and company officials present at the exhibition refused to explain the future plans for the three models.

SAIPA offers the Changan CS35 for 700 million rials ($17,500) which is assembled in the company’s Kashan factory in central Iran.

Two locally designed models by this company, namely the Quick and Saina caught the attention of some visitors.

 Borgward

German automaker Borgward made a debut at Tehran Auto Show on the opening day. It is showing the BX5 and BX7.

The vehicles will initially be imported. But through a joint venture deal with Kian Motor, Borgward is reportedly planning to assemble the cars in Iran.

 Renault

The French automotive giant Renault is present at the event through its official importer Negin Khodro. The company is showing its new Renault Megan in addition to several other models including new models of the Koleos and Talisman that are already available in the local market but not in big numbers.

Furthermore, Negin Khodro is also featuring a Renault formula one car that drew big crowds compared to other pavilions at the expo.

 Mahindra

On the opening day, a local auto company, Azim Khodro, officially announced a production deal with Indian carmaker Mahindra. It says several Mahindra models are to be assembled in Iran from completely knocked down kits.

The Mahindra cars, which will be assembled in Iran, include a SUV named XUV500, a small city car KUV100, and the Scorpio pickup. All three vehicles are on show.

According to Azim Khodro officials, the KUV100 would be on offer for 450 to 600 million rials ($11,250 to $15,000) depending on options.

The newly-built Shahr Aftab (Sun City) exhibition center in south Tehran is hosting the five-day event that ends on Friday. Fifty local and foreign automotive companies are in attendance.