Iranian automotive companies exported 2,237 shipments of vehicles, agricultural machinery and auto parts worth $98 million during the 11 months to Feb. 20.
According to the latest statistics released by the Islamic Republic of Iran Customs Administration, the main target market for Iranian vehicles and auto parts is Iraq with 1,904 shipments worth $62 million.
Iraq is followed by Afghanistan with a total value of such exports at $9.9 million. The third largest market for the export of these commodities is Russia. The total value of goods exported to the country stands at $2.6 million.
Iran’s largest automaker, Iran Khodro, is set to expand its presence in the Iraqi market. However, the government in Baghdad has set import tariffs for vehicles at 8-10% and for auto parts at 15%.
In the past, the import of vehicles and car parts into Iraq was tariff-free. The imposition of import tariffs hampered Iran’s automotive exports to the country, slashing it by half during the past fiscal that ended in March 2017 compared to the year before.
Hassan Golchubian, IKCO’s exports director for the Middle East and Africa, said talks are being held with Iraqi officials on tariff rates and that he is optimistic the Iraqi government will agree to reduce the import tariffs.
The Iranian company hopes to expand its exports in neighboring countries by offering a wider range of products, incentives and quality after-sales services.
>Ties With Azerbaijan
One of the countries with which Iran has strong automotive ties is Azerbaijan. During the 11-month period, Iranian automotive companies exported 47 shipments with a total value of $2.4 million to the northwestern neighbor.
Iranian carmakers' operations in Azerbaijan have not been limited to exports. The country’s largest automaker Iran Khodro has forged a joint venture deal with AzEuroCar LLC and a joint production plant known as Azermash is being constructed in southeast Azerbaijan in Neftchala Industrial District.
The production plant is to be inaugurated by President Hassan Rouhani in the coming weeks during a state visit to Azerbaijan.
In the first phase, the production plant will manufacture the locally-designed sedan named Dena.
The joint venture between IKCO and AzEuroCar was initiated in 2016 and according to Azerbaijan's Deputy Economy Minister Sahil Babayev, $15 million have been allocated for building the factory in Neftchala.
The plant will have an annual capacity of 10,000 cars and produce four models, namely Dena, Runna, Soren and Samand, and employ 300 people.
IKCO started operations in Azerbaijan in 2005 by launching the sale of its locally- produced sedan Samand. In the past decade, 4,500 Iranian vehicles were sold in that country.
Azerbaijan's President Ilham Aliyev lauded the project as “a manifestation of Iran-Azerbaijan relations”.
>Foreign Markets
Syria is one of the other major markets for Iranian goods. While the country has been ravaged by terrorist groups and economical turmoil, Iran’s automotive exports were not disrupted.
During the 11-month period, the total value of Iran’s automotive exports to Syria stands at $1.9 million.
In recent years, Iranian carmakers have made efforts to secure a foothold in the African Continent. The total value of vehicles and auto parts sent to the continent stands at $3.4 million.
The largest African market for Iranian automotive products is Senegal. During the 11-month period, $1.4 million worth of auto parts and vehicles have been sold in the African country by Iranian companies. Senegal is followed by Sudan with $927,183 and Egypt $562,975.
Earlier, IKCO announced that to win a place in the international market, Iran Khodro exported its first shipment of Dena+ cars to Senegal.
IKCO’s locally-designed LPG hybrid Dena+ sedan is to be used by the law-enforcement forces in the West African state, the company’s press office reported. Dena+ is a four-door sedan with a 1,645-cc engine capacity.
The Iranian auto company has a joint production deal with Senegal, known as SenIran. Under the deal, Senegal is to operate as a regional export hub for IKCO by selling the JV products to neighboring Guinea and Nigeria.
Prior to this, IKCO exported Samand, Dena and Runna models to Senegal.
Two of IKCO’s locally manufactured sedan models, namely Samand and Peugeot 405, are to join Nigeria’s taxi fleet. Initially, 310 units of the two models will be exported to Nigeria.
Golchubian believes that the automotive company can secure a significant share of the automotive market in developing countries like Nigeria.
"Samand and Dena are to be exported to the country and the vehicles will apparently be employed by Senegal's taxi agencies," he said.
“Senegal is to operate as an export hub of IKCO. Vehicles manufactured in Iran are to be reexported to Ivory Coast and Gambia from Senegal.”
