Page 52 - IRANRptAug22

9.1.2 Automotive sector news
Russia, Turkey and iran could join forces in car industry
Output of Iran’s top three automakers falls 3.7% in last Persian year
Iran reversal of ban on foreign car imports ‘mysteriously stalls’, leaving consumers with ‘death wagons’
The car-making sectors of Iran, Russia and Turkey are considering co-operating in car design and manufacturing, as Russia and Iran remain under heavy Western sanctions, the New Arab reported citing head of Iran's Auto Parts Manufacturers Association Mohammadreza Najafi-Manesh’s statements to the official IRNA news.
"These three countries can capture a large market for their products," Najafi-Manesh said, adding that they could target a population of "at least 800mn if neighbouring regions are included". Synergies of the trilateral co-operation could include direct payments in national currencies, large sales markets, and full scope of spare parts manufacturing, he argued.
Turkey already exports more than $12bn worth of automobile spare parts annually, while Iran was ranked the 19th largest automaker in the world in 2021, the New Arab reminds, citing data from the International Organisation of Automobile Manufacturers.
As followed by bne IntelliNews, Russia's largest carmaker AvtoVaz was effectively nationalised after its largest shareholder French carmaker Renault handed over its stake in the company to the state for one ruble.
Other foreign carmakers have either stopped assembly in Russia or pulled out of the market following the military invasion of Ukraine, and the market is starved of imported components.
In June Russia’s President Vladimir Putin ordered a new national car manufacturing strategy to be drafted by September 1, 2022, calling for affordable domestically produced passenger cars that would also be globally competitive.
Industry participants believe that massive investment would be required to replace systems such as ABS with fully self-sufficient domestic alternatives that are not relying on mostly US and German patents and licences.
Iran’s top three automakers—Iran Khodro Corporation (IKCO), SAIPA Group, and Pars Khodro—made 867,363 vehicles in the last Persian calendar year (ended March 20), marking a decline of 3.7% y/y, IRNA has reported, citing data from the Securities and Exchange Organization’s Codal information service.
IKCO’s output reportedly fell 6% to 451,121 vehicles (including 297,817 Peugeot cars, 50,095 Samand, 50,257 Dena and 35,630 Rana), while SAIPA’s volume decline 3.4% to 304,533 vehicles and Pars Khodro’s production total dropped 6.4% to 109,838 vehicles.
The Industry, Mining and Trade Ministry’s auto manufacturing target for last year was 1.2mn units.
In January, Industry, Mining and Trade Minister Reza Fatemi-Amin said that this year would see the structure of the country of 84mn’s automobile industry and relations between parts manufacturers and automakers reformed in order to boost production.
An initiative to reverse a longstanding Iranian ban on the import of foreign cars to meet surging customer needs has mysteriously stalled, RFE/RL reported on April 17.
The situation leaves consumers faced with buying vehicles from a domestic automaking industry accused of rampant corruption and putting "death wagons" on the road, the media outlet reported.
Focusing on domestic automaking was part of Tehran's efforts to develop a "resistance economy" that would lessen dependence on foreign technology
52 IRAN Country Report August 2022 www.intellinews.com