Page 48 - IRANRptAug18

2015 deal was reached.
Indian refiner Nayara Energy, one of India’s biggest buyers of Iranian oil, began cutting imports this month after the US scrapped the nuclear deal with Tehran and said it would re-impose heavy sanctions, three people familiar with knowledge of the matter told Reuters on June 11.
Previously known as Essar Oil, Nayara was bought by Russian state oil-giant Rosneft and partners in a $12.9bn deal last year. It typically buys around 5.5-6mn barrels a month from Iran, according to data made available by industry and shipping sources to the news agency.
India is the world’s third largest oil consumer and is expected to become the largest by 2040. It has few domestic reserves so imports 80% of its oil, with Iran presently its third-largest oil supplier. India is Iran’s second largest oil customer, trailing only China. The Indians imported 27.2mn tonnes of crude worth $11.1bn from Iran between 2017-2018 taking advantage of the lifting of economic sanctions against Tehran by the nuclear deal introduced in January 2016.
9.2.2 Automotive corporate news
Iran’s second largest carmaker SAIPA (Société Anonyme Iranienne de Production Automobile) has showcased its latest vehicle, the Roham sedan, at the Shiraz Auto Show, Digiato.com reported on July 21.
SAIPA, originally created as a joint venture between France’s Citroen and the Iranian government back in the 1960s, signed a present-day contract with PSA Group’s Citroen in 2016 to produce vehicles for the local market. However, the new deal has collapsed since US made it clear that any foreign company that continued to do business with Iran would be subject to secondary sanctions. Based on the recently developed SP-100 platform, the Roham is targeted at middle-class Iranian buyers, offering a range of options including an automatic gearbox. The new platform for the car is set to be the basis for several new vehicles from SAIPA, according to company officials.
It is not known whether Citroen assisted SAIPA with the model before its announced departure last month. The estimated price, although not announced by the firm, is expected to be between IRR500mn ($6,250) and IRR700mn, according to local car blogs.
Chinese and other East Asian automakers assembling vehicles in Iran have slowed or ceased sales because of the stark devaluation of the Iranian rial (IRR) by more than 100% since early April to weaker than 80,000 to the dollar, several industry insiders have disclosed.
Such manufacturers previously saw Iran as a cash cow for their vehicles as the market is heavily controlled by government pricing. Foreign players, including Beijing-based companies, were at times able to charge twice for their cars as they would in mainland China. China has come to regard Iran, home to 80mn people, as its next best near-home auto market. Several Chinese companies had a substantial presence at the 2018 Tehran Auto Show. The Chinese auto firms outnumbered European companies seven to one.
However, their relationship with the Iranian market has grown rather strained. According to one report on social media, a local company representing a Chinese firm which sells 4x4 Haval-branded vehicles had its showroom trashed by angry customers after taking 100%-deposits for cars that never arrived in the country.
Another report said that Kerman Motors, which sells JAC and Hyundai models,
48 IRAN Country Report August 2018 www.intellinews.com