Page 64 - IRANRptSep21

noteworthy because of the clear expanding influence of the KAA.
9.2.2 Automotive corporate news
Iran’s forlorn Saipa Pride hits all-time high price of IRT137mn
IKCO starts production of Peugeot-derived Tara sedan
Iran’s now discontinued SAIPA Pride model based on the KIA of the 1980s has hit an all-time high price of IRT137mn ($5,480 at the free market rate), Tasnim News Agency reported on July 12.
The auto market in Iran has been stagnant for several months due to the double-effect of the coronavirus (COVID-19) pandemic and US sanctions. However, even by the standards of Iran’s upside-down car market, a lack of production and affordable vehicles has pushed the humble second-hand Pride to the new high.
Car prices across the board are creeping up with the Iran Khodro Samand LX model now retailing at IRT213mn, the 1980s Peugeot 405 GLX model hitting 205mn and the Peugeot Pars coming in at IRT250mn.
According to a report by the Iranian Standards and Quality Industry Association (ISQI), some 9,617 vehicles produced in the first Persian calendar quarter (March 21 to June 21) were classed as defective and not fit for sale. The report said that 169,282 units were produced in the quarter.
Iran Khodro Company (IKCO), the largest Iranian car manufacturer, has produced 407 units of its new Tara model set to become available in next month, Asbe Bokhar automotive magazine reported on June 28.
Based on the Peugeot 301, the automobile is set to fill the firm’s platform of compact sedans and act as an ultimate replacement for the Peugeot 405 models which have been produced by the company for the past 20+ years. Development of the Tara (previous working name K132) started before the French company pulled out of joint production with IKCO in 2018 due to US sanctions levied on the industry.
According to the CODAL.IR website, as of June 2021, the car’s price in the local market has been set at IRR253mn ($7,323 free market rate) while other versions of the model including the “Dandehi” model, which has a superior engine and more sporty looks, is priced at a higher price.
The suggested recommended retail price acts only as a guideline to official retailers, with third parties likely to increase the price of the vehicle in the second-hand and unofficial markets.
9.2.3 Aviation corporate news
Longstanding plans to privatise Iran Air scrapped
Longstanding plans to privatise flag carrier IranAir have reportedly been scrapped over concerns that the airline might be dogged by future financial problems under a non-state owner.
Iran’s Transportation Minister Mohammad Eslami was cited by Press TV as saying that the government decided to remove IranAir from its privatisation list following discussions between ministers that determined there was a risk of insolvency for the carrier after a few years of operations under private ownership.
“This company was available for privatisation for several years. However, the situation was not ripe for such a divestment because what would take place in practice could cause harm,” the minister said.
IranAir, founded just after WWII and known in Iran as Homa, is the largest airline in Iran. It operates both domestic and international routes.
The airline has faced financial difficulties in recent years caused by US sanctions that place new planes and parts out of its reach.
64 IRAN Country Report September 2021 www.intellinews.com