Page 51 - IRANRptNov18

were introduced in early August. The grey market values of nearly-new cars in Iran have risen to around 30-50% higher than factory prices. That has added to the pressure on would-be buyers with retailers bulk-buying parts and vehicles and preferring to sell them informally to gain greater profit.
According to estimates in circulation, some 200,000 vehicles are stuck on factory floor assembly lines, waiting for specific parts. Near-bankrupt auto parts makers are either refusing to release the required components or cannot produce enough due to a lack of materials on the market.
Khazar, an Iranian-Azerbaijani car assembler based in Azerbaijan’s Neftchala region is preparing to export to Russia and Georgia, Islamic Republic News Agency reported on October 20.
The brand is the result of a joint venture between Iran Khodro Corporation (IKCO) and Azermash, an Azerbaijani state-owned automaker. The enterprise produces the IKCO Dena+ model, released in 2016 and based on the Peugeot 405 platform from the 1980s.
Azerbaijani Deputy Minister of Economy Niyazi Safarov announced in Baku that the long-discussed joint venture was moving ahead in line with original plans. Iranian exports via Azerbaijan continue to grow thanks to the growth of the North-South Transport Corridor, providing transport options that link Moscow to Iran’s southern Persian Gulf ports via the country in the South Caucasus. Currently, Khazar-branded vehicles are popular with taxi companies and government agencies in Azerbaijan given their low cost and affordable repair bills. However, they face competition from other low-cost cars such as those of Chinese automakers pushing for sales.
The project between IKCO and AzerMash was kickstarted in 2016 with capital of 24mn manats ($14.1mn at the time). AzerMash owns 75% of the company.
Chinese state-owned car giant BAIC Motor Corporation has been announced as the new partner of Iran’s Diar Khodro, a small producer that specialises in making small cars, Persian Khodro has reported. Several small and large Chinese automakers are active in Iran and a few are already producing cars in the thousands. All of Iran’s automakers have a deal with a Chinese car producer. The Iranian market is changing given that European vehicle producers are pulling out, fearing they will be hit by the renewed US sanctions if they stay.
Diar Khodro’s latest model is the Senova X25. I tis a small-sized crossover equipped with a 1.5-litre inline four-cylinder engine, which puts out 114bhp and 148Nm of torque.
The company initially plans to produce five Senova X25 models per day.
A sale price for the vehicle has not yet been announced. That’s probably because the collapse and subsequent fluctuation of the Iranian rial (IRR) versus the USD amid the US sanctions levied against Tehran has led to a great deal of uncertainty in market pricing.
The share of Chinese cars on the Iranian market continues to grow. Last year, nearly a quarter of all cars in Iran were Chinese, according to latest available data.
China’s Guangzhou Automobile Group Co. (GAC) is expected to make landfall in Iran within the next few months. It plans to operate a new automaking facility near the city of Arak, according to local reports.
51 IRAN Country Report November 2018 www.intellinews.com