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Production of 2 Chinese Models Stopped

Production of 2 Chinese Models StoppedProduction of 2 Chinese Models Stopped

Kerman Motor Company stopped the production of two Chinese models in the Iranian month ending Sept. 21.

According to CarNet.ir, the brakes were pulled on JAC J5 and Lifan X60. The company is reportedly focusing its efforts on alternatives such as Lifan 820, JAC S5 and X50 models.

A year-on-year comparison shows that in the first half of the current Iranian year (started March 20), production dropped by 38.4% at Kerman Motor Company.

JAC S5 held the record for the highest crossover sales in Iran’s market in the same period.

However, customers wanting to buy the car have not received the car even after months of making the down payment. In light of this, it is only logical for the company to want to focus on accelerating the production of JAC S5.

Several auto experts believe that the long delay between the time customers signed up for receiving the cars and the actual delivery date has caused the price of the car to go up, such that its market price is higher than the factory price.

Furthermore, as the car is not sold in installments, leasing companies are offering to sell with an interest rate that makes the total price ludicrously higher than its actual worth.

Experts believe that once the cars are delivered by Kerman Motor Company, its price could drop by 20 million rials ($570). The car is currently sold for as high as 900 million rials ($25,700).

 

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