Renault to Resume Iran Exports

Renault is readying to resume the export of car parts to Iran pending “clarifications” on the easing of trade sanctions against the country, said Gilles Normand, chairman of the French automaker’s Asia-Pacific region.

“We can start the preparatory work (with suppliers) while waiting for the go-ahead on the possibility to exports parts to Iran,” Normand said in an interview in Tehran, attending the first International Conference of the Automotive Industry held in Iran. (Reuters/Daily Star, 1 December)

“Such a move would require an opening of financial transactions channels with the country,” Normand added.

Creating special banking channels for items that were exempted from sanctions at Geneva talks, including auto parts.

“There is work to be done since the agreement was signed and clarification on the rules is expected around January 2014,” Normand said. “We are following an extremely pragmatic policy and respect international regulations.”

Renault sold more than 100,000 vehicles, amounting to 10 percent of the Iranian market, in 2012.The automaker’s activity in Iran was hurt this year by U.S. sanctions, which led the automaker to stop the export of car parts in June.

File photo: Employees work at Iran Khodro's joint venture assembly plant with France's Renault to produce the Logan, sold locally as the Tondar. Tehran, 22 September 2007. (Raheb Homavandi/Reuters)

Geneva Agreement Opens Up Iran’s Car Market

Just one week after the Geneva Agreement on Iran’s nuclear program, major carmakers and parts suppliers have shown up in Tehran to assess the Iranian market's potential.

The International Conference of the Automotive Industry, the first such event in Iran, has brought together more than 150 companies from around the globe. The conference opened on Saturday in Tehran. The industry has been battered for more than a year by sanctions.

Iran’s Industry and Commerce Minister Mohammad Reza Nematzadeh told reporters at the site of the Conference that he wanted ”more cooperation with foreign companies,” including French manufacturers Peugeot and Renault, both of which have had a long history of doing business with Iran. Mr Nematzadeh added he hoped for the lifting of sanctions on the car industry “by the end of December.” (AFP, 1 December)

Prior to the most severe sanctions imposed on Iran in 2011, the country had the 11th-largest car market in the world and was the 13th-largest car producer.

Patrick Blain, president of the International Organization of Motor Vehicle Manufacturers, told AFP of the “considerable potential” in the Iranian market. “There is no reason not to come back,” he said. Blain highlighted the low car saturation rate of 89 vehicles per 1000 people, less than China, in a country with a population of nearly 77 million. (AFP, 1 December)

Photo credit: A newly-manufactured automobile called TIBA 2 is displayed during an International Auto Conference in Tehran, Iran, on 30 November 2013. (Ahmad Halabisaz/Xinhua)

Iran’s Auto Production Down A Further 47%

Iran’s auto manufacturing output for the first four months of the Iranian year, which coincides with the four months ending July 2013, was down a further 47 percent year-on-year (y-o-y), according to data from the Iran Vehicle Manufacturers Association.

Business Monitor International (BMI) in its latest report on Iran’s auto industry, ‘Iran Autos Report Q4 2013,’ said there were still too many risks to manufacturing – “not least the shortage of capital and Western sanctions” - to expect a full recovery in the current year. (BMI, 15 November)

BMI also reports that although production of the Peugeot 206 recommenced in December 2012, output of the model was down 67 percent y-o-y for the four-month period, despite earlier expectations that the reintroduction of the model could be the beginning of an upturn for the industry.

File photo: SAIPA Pride production facility in Iran (Persian Khodro) 

Newly rendered PU1 compact pickup truck from Iran Khodro

 

2014 Iran Khodro PU1  [photo: Nasr News]

Recently unveiled is Iran Khodro's latest rendering of its expected PU1 compact pickup truck. PU1 is derived from the Iranian assembled Peugeot 405 platform, featuring ICKO OHVG2 Dual-Fuel 1700 cc engines in CNG and two gasoline grade configurations. Power transfer is through driveshaft and rear axle differential. Planned production is now expected to commence during the second half of 2014, with a manufacturer's retail price below $6500 U.S.

ICKO OHVG2 Dual-Fuel 1700 cc engine  [photo: ICKO]

Iran auto production figures, July 2013

 

Above: SAIPA Pride production facility, Iran [Persian Khodro] 

Below: Iran auto production figures for Tir 1392 / ~July 2013 (Source: Ivma.ir)
[Production table: Best Selling Car blog] 

 Additional observations from Matt Gasnier at Best Selling Car blog:

In the Persian calendar, July 2013 is roughly corresponds to the 4th month of the Persian year 1392, Tir. New car production slows down its freefall somehow this month, down ‘just’ 31% year-on-year to 51,315 units, bringing the year-to-date total after 4 months to 155,425 units, down 47% on last year. This slowdown is mainly due to the two most popular models behaving fairly well and a couple of new models improving year-on-year.

The [SAIPA] Pride is actually up 3% to 24,620 units, or nearly half the entire car production in the country this month! The year-to-date total is still in negative at 73,565 units, down 32%. The Peugeot Pars is down a very reasonable 9% to 6,252 units, to be compared with -58% for the Peugeot 405 and -57% for the Iran Khodro Samand. The Saipa Tiba is up 238% year-on-year and one spot on last month to #5 with 3,271 units while the Iran Khodro Runna is up a huge 2086% to 2,230 units, for both models their best monthly scores so far in the Persian year 1392.

Iran auto industry production appears to be stabilizing, following adverse effects brought on by U.S.-led sanctions aimed at blocking or deterring foreign industry involvement with the country. But like Iran's  determination in spite of all the obstacles to continue forward with their civilian nuclear power program, the Iranians seem equally attached to their domestic auto production programs.

Iran auto production figures, June 2013

 

Above: Saipa Tiba / KIA Pride platform 

Below are Iran auto production figures for Khordad 1392 / ~June 2013 (Source: Ivma.ir:) 

(Table: matgasnier at Best Selling Car Blog)

 Additional observations from matgasnier at Best Selling Car Blog: 

The Saipa Pride is back above 20,000 monthly units for the first time so far in 1392 to 20,834, however down 18% on last year. In second place we find the only model in the Top 5 to to enjoy a year-on-year: the Peugeot Pars, basically a 1987 Peugeot 405, is up 9% to 6,336 units and is now also #2 year-to-date at 11,709 units. The Iran Khodro Samand is back up 5 spots on last month to round up the podium at 3,279 units, down 68% year-on-year, and is followed by the Peugeot 405 (-74%) and Renault Tondar 90 (aka Dacia Logan at -55%).

Because at the same time last year they were either still kick-starting their production or had it interrupted, both the Saipa Tiba at #6 and 2,829 units (+131%) and the Iran Khodro Runna at #7 and 1,987 (+3386%) post impressive year-on-year growths, however they remain far from their best monthly volumes. Notice also the Chery MVM315 (aka Fulwin 2) at +434% year-on-year, however the Khordad 1392 production figure is estimated and will be confirmed next month.

Due to sanctions, Iranian car production continues to adjust away from Western and towards Asian model types. Barring a rapprochement with the West, this trend will continue.

Iran auto production figures, May 2013

 

Iran Khodro Runna (modified Peugeot 206 SD)

At the Best Selling Cars blog, matgasnier has reported on Iran's auromobile production figures for Ordibehesht, the second month of the year 1392 in the Persian calendar (roughly May 2013). He reports that production is down 57% from last year's figure for the year, to 38,537 units compared to 88,939 one year ago, due to the effects of sanctions.

Below is a reproduction of his production chart with photos for some of the listed models types:

Saipa Tiba (modified KIA Pride)

Chery MVM315 (Fulwin 2/Bonus) built in Iran by Iran Khodro

Iran Khodro Samand (modified Peugeot 405)

Iran Khodro Peugot Pars (modified Peugeot 406)

Lifan 620 (built in Iran by Kerman Motor with Lifan 720 powerplant)

Iranian-built hybrid-powered metro bus

Recently unveiled Iranian-built hybrid-powered metro bus

HESS (AKIA) hybrid metro busses in state of assembly

Municipality of Tabriz receives initial batch from AKIA.

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Good view of the extended length of the new metro bus

photos: ostan-as.gov.ir

150 new busses for Isfahan Bus Rapid Transit (BRT)

150 new Iranian manufactured busses including these Pishro Yadak City Bus LCK6120G types recently added to the greater Isfahan metropolitan area (Najafabad) Bus Rapid Transit (BRT) system.

Chinese manufactured Youngman-Neoplan busses also added to BRT

Pishro Yadak City Buses being manufactured in Iran

Pishro Yadak City Bus assembly area within the manufacturing plant

Photos: Reza Ghelichkani at Isfahan Metropolis New Agency

Iran Auto Production Plunges by 36 Percent

Iran's auto production fell by more than 36 percent over the past three months, ISNA news agency reported today.

The production fell to 241,500 vehicles in the first quarter of the Iranian year (March 21 to June 20). Iran produced more than 1.5 million vehicles in the last calendar year. The decline coincides with the halt of parts deliveries to Iran by French manufacturer Peugeot due to sanctions.

Peugeot is a partner of the main Iranian automaker Iran Khodro (IKCO), which manufactures the 405 and 206 models in Iran, accounting for approximately 40 percent of Iranian automobile production.

The head of the Iranian Association of Automobile Manufacturers, Ahmad Nematbaksh, told ISNA that the drop in production is due to the "lack of money available to the manufacturers" given by the state, which caused a "cash crisis."

The business daily Donaye Eghtesad said the decline in production is "unprecedented in the past 20 years."

Photo Credit: Iran's leading automaker IKCO unveils the new "Dena" in Tehran last year. (AFP Photo/Atta Kenare)

Runna – Iran New Sedan

Iran’s largest automaker Iran Khodro (IKCO) announced today the launch of its new sedan Runna for domestic and regional markets. IKCO plans to produce 50,000 Runna sedans in 2012. The car will go on sale in April. IKCO, founded in 1962, is the oldest and biggest automaker in the country.

Photo: Runna. IKCO Promotional Photo