Economy, Auto
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Kerman Motor Welcomes German, S. Korean Carmakers

Kerman Motor Welcomes German, S. Korean CarmakersKerman Motor Welcomes German, S. Korean Carmakers

Three of the world’s largest carmakers, Volkswagen, Hyundai and Daewoo, are in talks with Iran’s Kerman Motor Company to begin manufacturing their latest products at Iran’s third largest automotive hub.

Located in southeastern Iran, Kerman Motor Company currently produces a range of Chinese vehicles, including JAC J5 and S5 as well as Lifan 820, 620, X50 and X60, Eghtesad News reported.

Once western-imposed sanctions on Iran over its nuclear program are lifted, the company will start partnerships with European and South Korean auto manufacturing companies.    

On July 14, Iran and P5+1—the US, Britain, France, Russia and China, plus Germany—signed the Joint Comprehensive Plan of Action, based on which nuclear-related economic sanctions against Iran will be removed in exchange for Tehran limiting parts of its nuclear energy program.

Kerman Motor had previously targeted the production of 80,000vehicles from two Chinese brands JAC and Lifan by the end of the current Iranian year (March 19, 2016). However, due to Iran’s auto market stagnation, the projected number was reduced to 35,000 units.  

The Kerman-based company has been conducting negotiations with Chevrolet Korea(GM Korea) which is one of the subsidiaries of General Motors. If the two sign a deal, this would mark the first instance of an American-owned auto company setting up business in Iran after the Islamic Revolution of 1979.

Kerman Motor is currently a holding companythat comprises Kerman Motors, ModiranKhodro, RayenKhodro and Bam Khodro, with a workforce of 6,500.

Vehicles produced by the holding account for nearly 7% of all vehicles manufactured in the country and 10% of the overall worth of the car market. After state-owned Iran Khodro Company and SAIPA, Kerman Motors is the country’s third largest carmaker and the top private sectorcarmaker. 

Financialtribune.com