Economy, Auto

SAIPA Production Hits Record

SAIPA Production Hits RecordSAIPA Production Hits Record

SAIPA, Iran’s second largest auto manufacturer, has produced 50,000 units in the last Iranian month (ended August 22) and broke its earlier record.

This marks a 53% rise compared with the same period of last year, a local automotive website, Persian Khodro, reported.

According to Hassan Qarei, SAIPA’s director for research and strategic planning, the company is aiming to produce at least 530,000 vehicles this year.

The official detailed the company’s production rate in recent months and compared it with previous records. He reported that in the first five months of the current Iranian year, SAIPA manufactured 198,592 units which, compared to last year’s 158,506, indicates a 25% rise year-on-year.

Qarei said that in addition to providing engineering services to international companies, SAIPA has earned $85 million from car and auto part exports in the last Iranian year (ended March 19, 2016).

He added that the company has gained a 60% share in national auto exports.

The official also announced that by March 2017, his company will unveil four new models, including the subcompact New Sandero, Changan’s SUV CS35 and the Padra Z24 LXB pickup truck that used to be produced by Zamyad Company.

“SAIPA has been one of the most successful Iranian companies in attracting foreign investors and partners,” he said.

The company has been negotiating and forging deals with major automakers for joint investment in new projects and establishing joint ventures.

The company recently forged a deal with Paris-based carmaker, PSA Peugeot Citroen, which obliges the French carmaker to invest €300 million ($330 million) over the next five years for the production of three Citroen models, which will be sold in the country via a network exclusively established for the brand.

On August 22, Iran’s Minister of Industries, Mining and Trade Mohammad Reza Nematzadeh said the outlines of the deal have been determined and the final deal will be signed in next month.