Iranian automaker SAIPA has registered pre-orders for 350,000 vehicles, of which about 50,000 units—mainly Renault and Brilliance cars—cannot be delivered even in the best-case scenario, an Iranian parliamentarian says.
Vali Maleki also told local automotive website Asbe Bokhar, “SAIPA has registered 14,000 and 34,000 pre-orders respectively for Brilliance and Renault cars that it cannot deliver.”
Renault has officially suspended its ties with Iran while the Chinese firm, Brilliance, without even releasing a statement, has downsized its operations in the country after US President Donald Trump unilaterally reneged on the United Nations-endorsed Iran nuclear deal and reimposed sanctions against Tehran.
SAIPA used to offer Renault Sandero and Logan (locally known as L90 or Tondar 90). The company also used to produce several Brilliance models, including H220, 230, 320 and 330.
Maleki added that SAIPA’s truck making subsidiary SAIPA Diesel has registered 1,700 orders for Volvo heavy duty vehicles.
The Swedish multinational manufacturer has also put its Iran operations on hold.
According to the MP, the automotive company will have to refund customers or offer other vehicles as replacement since SAIPA cannot produce those vehicles independently.
Iranian car companies are over-reliant on foreign suppliers and the US-imposed embargo on the country has put the sector under mounting strain.
Data released by the Industries Ministry reveal that in the last fiscal year (ended March 20, 2019), 955,923 cars and commercial vehicles were produced in Iran, indicating a 37.8% decline year-on-year.
