Page 49 - IRANRptFeb19

IKCO, aiming to tap into several developing regional markets, has also created a joint venture with Azerbaijani automotive company AzerMash OJSC named Khazar Car Company. The company, located in Neftchala, 168 km south of Baku, manufactures the Dena sedan. IKCO Press was cited by the daily as saying that the JV started production of a Samand model during the weekend. SAIPA, Iran’s second-biggest automaker, opened a production unit in 2007 in the industrial city of Hassia in Syria’s Homs province. The company has said it is intending to raise production in Syria and expand the number of models it manufactures there.
Iran Khodro (IKCO) has jacked up the prices of its locally assembled vehicles by an average IRR100mn ($885 at the free market rate), Iran Student News Agency reported on January 9.
State-owned IKCO, Iran’s largest automaker, has suffered a massive reduction in produced vehicles and sales over the past six months, during which time the value of the Iranian rial (IRR) collapsed against the dollar in the face of reimposed US sanctions on Tehran. It fell by 75% at its nadir before recovering to around 60% weaker, where it stands today. The huge devaluation forced many would-be buyers of cars on to the second-hand market.
IKCO has for months been debating big price increases given the much higher foreign currency costs the company must endure in order to pay for parts and raw materials.
It was the head of Iran’s Consumer Protection and Manufacturers Association who announced that the carmaker’s prices were to be hiked within the next few days, adding that customers who placed orders prior to the announced price rises would be entitled to buy at the rate they were previously given.
The Peugeot Pars, an upgraded version of the more than 30-year-old Peugeot 405 model will under the new prices cost IRR541mn (€4,790), while the 20-year-old Peugeot 206 model will retail for IRR545mn (€4,800). On the open market, sellers charge 30% more than the factory sticker price for the vehicles. SAIPA has also increased the prices of its vehicles in the past week after getting a green light from the consumer pricing agency.
9.2.3 Transport corporate news
Germany has pulled the licence of Iran's second largest airline, Mahan Air. Berlin officials cited "security concerns" and activities the carrier was said to be involved in in conflict-torn Syria when they announced the withdrawal of the permit on January 21. The German Foreign Ministry has said Mahan maintains ties with Iran's Islamic Revolutionary Guard Corps (IRGC) and lays on military transport flights between Iran and Syria.
The licence move stems from the latest of a series of disagreements between Iran and EU member nations , which, along with China and Russia, are supposed to more or less be on the same page in defending Iran’s economy from the reimposed heavy US sanctions.
The Federal Aviation Office (LBA) of Germany made the decision to ban Mahan from landing in Germany with immediate effect. Consultations on the matter took place with European allies and the US, German government spokesman Steffen Seibert said. However, he said the decision to revoke the licence was not a result of US pressure, but was "based on considerations of our security needs".
"It cannot be ruled out that this airline carries out transports to Germany that affect our security concerns," Seibert told a Berlin news conference.
"This is especially true against the backdrop of terrorist activities, intelligence
49 IRAN Country Report February 2019 www.intellinews.com