Economy, Auto

Iran Private Automakers Share 11%

Kerman Motor produces Hyundai’s i10 and i20 and several Lifan and JAC models. Kerman Motor produces Hyundai’s i10 and i20 and several Lifan and JAC models.

Private carmakers barely account for 11% of the local auto manufacturing industry, local auto production data indicate.

According to a report by the Ministry of Industries, Mining and Trade, Iranian carmakers (state-owned and private) produced 162,516 units during the first two months of the current calendar year (started March 20), from which the output of private automakers was 18,319 units.

During the two months, the auto industry has seen 11.5% year-on-year growth, the report said. This is while private firms reported 52% y/y jump in their production.

While the industry shows year-on-year growth, auto output was on the downside in the previous month (ended May 20) compared to a month earlier.

Domestic carmakers produced 34% fewer cars during the second month of the calendar year compared to the first.

> Largest Company

Producing 8,962 vehicles during the two-month period, Chinese automaker Chery was the largest private carmaker in Iran. According to the report, the company recorded a 17.8% y/y jump in its production during the period.

The automaker produces seven models including Arrizo5 and Tiggo5.With a broad range of cars and prices ranging from 315 million to 1.02 billion rials ($8,400 to $27,200), the company has a 5% share of the industry.

> Kerman Motor

Kerman Motor and subsidiaries produced 8,403 cars during the period, recording 109% y/y growth. The company has forged several deals with foreign firms including South Korea’s Hyundai and China’s BYD, JAC and Lifan Motors.

It now produces Hyundai i10 and i20 in addition to several Lifan and JAC models, while its subsidiary Karmania is producing BYD S6, and Geely’s GC6 is produced by Bam Khodro – another subsidiary of the firm.

The company’s car prices range from 470 to 970 million rials ($12,500 to $25,800).

Bahman Group which produces Mazda3 also reported 103% increase in output but still has a meager 0.6% share of the market. The company produced 954 vehicles during the two-month period.

It has been reported that production lines of the Iranian firm Rayen Vehicle Manufacturing Company have been halted. Unconfirmed sources say the company has gone into receivership.

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