Iranian carmaker SAIPA and its French partner PSA’s Citroen brand announced an upcoming presale of the Citroen C3 in Iran few days after the hawkish President Donald Trump pulled the United States out of the historic 2015 nuclear deal, indicating that the two carmakers have seemingly not been shaken by the underhand move.
According to a Sunday joint press release, the presale will start on May 16 and the vehicles will be delivered in August.
SAIPA and Citroen signed a 50-50 joint venture in late 2016 according to which the Paris-based carmaker has undertaken to invest more than €300 million ($352 million) in Iran during the next five years. In addition to C3, another model of Citroen, namely, C4 will also be produced in Iran.
Car enthusiasts are to be charged 600 million rials ($14,285) as down payment for the C3. The joint venture which is called SAIPA-Citroen is yet to announce the final price for the model.
The C3 is a small hatchback equipped with a six-speed automatic gearbox and a 1.6-liter turbo four-cylinder engine with 163hp output. It meets Euro 5 emission standards and was initially unveiled in 2002 in France.
The latest version of the car introduced in 2016 will be sold in Iran. In addition to the Citroen badge, the vehicle offered in Iran will carry the SAIPA-Citroen badge in Persian.
Kashan Facility
The production site which used to be called SAIPA Kashan (located in central Isfahan Province) has been renamed to SAIPA-Citroen and is considered one the most modern production facilities in Iran and is equipped with the latest technologies available in the country.
In addition to the C3, several other models are manufactured at Kashan production plant, including the homegrown Saina and Tiba along with Changan C35 which is made in collaboration with the Chinese carmaker in Iran.
According to the data released by the Ministry of Industries, during the past fiscal, which ended in March, 138,969 cars were manufactured at the site.
Currently, a small number of Citroen C3s are produced in Iran on a daily basis but the JV plans to increase the production rate up to five units per hour.
As the C3’s production is gradually going into full swing, the company plans to phase out other models.
It merits mention that French technicians from Citroen directly monitor the production of the C3 in Iran.
Major parts used in the model, including the engine and the gearbox, are imported into the country. Reportedly locally manufactured parts have a 20% share in Citroen C3s made in Iran. The share is to go up over time.
Paved Road
SAIPA started a test assembly of the Citroen C3 in January. At the time, the Iranian carmaker issued a press release according to which the mass production of the C3, initially from semi-knocked-down kits, was to start in May.
Seemingly during the intervening months, the company has been able to pave the way for the eventual move.
The vehicle was officially unveiled in a ceremony held in Tehran in Nov. 2017. Speaking at the ceremony Fariborz Shahbaz, SAIPA-Citroen’s director said, “The production lines are being installed and will be launched before September 2018. Initially, 20% of parts used in the cars will be locally manufactured.” The joint venture has been able to deliver on both promises.
Furthermore, at the time, Yann Martin, deputy general manager of SAIPA-Citroen said, production of the C3 will increase to 200,000 units per year, noting that 30% of the cars produced under the SAIPA-Citroen contract will be exported.
Regarding the possible risk of US sanctions’ return, Martin said, “We are not a political entity. We just want to do business in Iran.”
PSA’s Initial Reaction
Following Trump’s decision to renege on the nuclear deal with Iran, French carmaker and owner of Peugeot brand PSA Group initially said it hoped the European Union would adopt a common position on Iran.
“Like other economic players, we are following the evolution of the matter, and are also following the EU’s official position on this topic,” said a spokesman for PSA, adding that the group hoped the EU’s position regarding Iran would be a “singular” one, Reuters reported.
In addition to Citroen, the other major PSA brand Peugeot has forged a joint venture agreement with Iran’s largest carmaker Iran Khodro.
