Economy, Auto

7-Month Auto Market Report

7-Month Auto Market Report7-Month Auto Market Report
Iran Khodro, Iran’s largest auto manufacturer, had the biggest share in the country’s auto market during the first seven months of the current Iranian year (started March 20)

Iran Khodro was followed by its main rival, SAIPA—the second largest auto manufacturer in Iran—in terms of cars sold in the Iranian market.

Donya-e-Eqtesad, the sister newspaper of Financial Tribune, released the latest auto market report for all passenger vehicles sold in the domestic market.

According to the report, the two semi-state-owned auto manufacturers of Iran, IKCO and SAIPA, had a collective share of 86.65% in Iran’s auto market.

During this period, IKCO’s share observed a 2.07% year-on-year fall and the company registered a 48.41% share.

This is while SAIPA has been able to increase its share in the market by 2.73% compared with the same period of last year, garnering a 38.24% segment in the market.

Private auto manufacturers, MVM, Kerman Motor, Diar Khodro and Bahman Motor, which are mostly producing Chinese and South Korean cars in collaboration also observed a 0.8% fall to currently hold a 9.8% market share in the last seven months.

Rational pricing policies by IKCO and SAIPA, in addition to the prospect of the arrival of new models, had a negative effect on locally assembled Chinese brands by the private companies.

The figures do not include the percentage of Chinese models produced by the two conglomerates, which are increasing in number month-on-month.

 Imports Increase

Another modest trend in the market is that auto importers have reported a 1.1% rise in their market share compared with the same period of last year.

According to the report, imported passenger cars have a 4.4% share in Iran’s auto market.

The landscape is likely to change significantly in the coming months. IKCO has forged a joint venture with Peugeot and SAIPA has been able to sign a deal with Citroen to produce some of their Chinese-derived models.

This is while by signing a deal with the Industrial Development and Renovation Organization of Iran, Renault will be operating almost independently in Iran.

Moreover, smaller auto importers and private automakers holding talks for possible joint ventures with international firms, including Volkswagen AG, Skoda Auto, Mercedes-Benz and Chinese automakers like Changan and Chery.

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