Page 46 - IRANRptOct21

The price and destination of Chalous gas would be co-ordinated with Russia, “adding to the energy power that Moscow has over Europe, already a key matter of contention between Europe and its Nato partner, the U.S.,” the publication wrote.
KEPCO’s chief executive officer, Ali Osouli, has said the Chalous structure is estimated to hold gas reserves equivalent to a quarter of the supergiant South Pars gas field. South Pars has an estimated 14.2 trillion cubic metres (tcm) of gas reserves in place plus 18bn barrels of gas condensate. It already accounts for around 40% of Iran’s estimated 33.8 tcm of gas reserves and around 80% of Iranian gas production.
9.1.2 Automotive sector news
Iran’s car production up 4% y/y despite sanctions and Covid
Iran’s central bank to inject 150 trillion into troubled auto producers
Iran’s car output expanded in the last Persian year (ended March 20) despite targeted US sanctions and the coronavirus crisis hitting the local automotive industry. The country produced 900,714 cars, marking a 4.3% y/y gain.
The official data did not appear to include light commercial vehicles (LCVs). Tariffs on imported cars, which can run to more than 100% for luxury models, help to defend the industry. Two beneficiaries are Iran Khodro (IKCO) and SAIPA, which in the 2020/2021 Persian year were again Iran’s biggest automakers, with Pars Khodro in third place. IKCO produced 480,338 cars, enjoying growth of 21.97% y/y. SAIPA assembled 317,321 cars, suffering a 12.67% y/y decline. Pars Khodro’s output fell to 103,055 cars, down 2.84% y/y. Locally made Peugeot models traditionally dominate car assembly in Iran. Some 346,575 such cars were assembled in the Islamic Republic during the year in question. IKCO, meanwhile, turned out 55,220 own-brand Samand sedans.
As in previous years of late, the low-cost Tiba and old Pride model were the two most popular vehicles produced by SAIPA, at 236,939 and 50,413 units, respectively.
At the beginning of the calendar year, the Rouhani administration targeted the annual production of 1.3mn vehicles. The coronavirus crisis hindered attempts at achieving that threshold partly because it cramped flows of imported components.
Central Bank of Iran (CBI) governor Abdul Nasser Hemmati has said that the national lender plans to inject Iranian rial (IRR) 150 trillion ($607.3mn at the free market rate, $3.6bn at the official rate) in loans into local auto producers Iran Khodro (IKCO) and SAIPA to stem losses they have suffered in the past year, Eqtesad Iran reported on January 31.
IKCO and SAIPA, part state-owned companies that are the two largest automakers in Iran, have haemorrhaged cash amid the coronavirus (COVID-19) crisis, which has seen car sales plummet and belts tightened across the country.
The loans are to be provided through a newly developed financial instrument known as “GAM” by its Iranian acronym, put together to support industry in Iran impacted by the pandemic and US sanctions.
Iran’s Supreme Leader Ayatollah Ali Khamenei previously ordered authorities to help the loss-making auto giants increase local auto output by 50%, including by pushing ahead with launching new car models.
Recently released production data shows that IKCO, SAIPA and third largest automaker in Iran Pars Khodro (previously GM Iran) together manufactured and assembled 730,787 cars during the first 10 months of the current Persian
46 IRAN Country Report October 2021 www.intellinews.com