Reporting "Asre Khodro", Iranian automakers have long focused on boosting the quality and capacity of auto parts manufacturing, instead of relying on foreign producers. This was strengthened during successive years of western sanctions imposed on the country, with the government increasing support for local parts makers as of ۲۰۱۳.
Iran’s Minister of Industries, Mining and Trade Mohammed Reza Nematzadeh recently told British magazine Just Auto that a minimum automotive content would start at ۴۰%, but the goal is to raise this across the industry to an eventual ۸۰%.
The move has been welcomed by observers with knowledge of SAIPA, which only last week concluded a production deal with Citroen to produce several new vehicles in Iran.
“French automakers evaluated parts makers in Iran and estimated their capacities,” the source said.
According to the source, Pars Khodro, a subsidiary of SAIPA, is capable of producing parts and has been doing so for the parent company for several years.
“We have evaluated and accredited our parts makers. Right now they [Citroen] have assured ۴۰% of cars can be produced with high quality and probably they are evaluating more parts makers to increase localization,” the source said.
The ۵۰/۵۰ SAIPA-Citroen joint venture will cover the entire value chain, from the design stage through to vehicle marketing. Manufacturing will take place at the Kashan plant in Iran, which will be ۵۰% owned by the PSA Group.
The JV will invest more than €۳۰۰ million ($۳۲۹ million) in manufacturing and R&D during the next five years, with the agreement reinforced by technology transfers and a significant level of local content. It will take effect after the signing of the final agreement scheduled for late ۲۰۱۶.
The first Citroen vehicle is expected to roll from Pars Khodro’s Kashan plant in ۲۰۱۸.
It appears that the French side is largely financing the deal that will use SAIPA’s plant and workforce, while Citroen will bring its automotive expertise to bear with the new products.
“After the Islamic Revolution in Iran, there has been a very good relationship between SAIPA and Citroen. We have produced several cars from Citroen,” the SAIPA source said.
“Citroen would not let us produce any of their models unless they were confident of the product’s quality.”
With its three world-renowned brands, namely Peugeot, Citroen and DS, the PSA Group sold ۳ million vehicles worldwide in ۲۰۱۵. The second largest carmaker in Europe, PSA Group, recorded sales and revenues of €۵۴ billion in ۲۰۱۵.
The group confirmed its European leadership in terms of controlling carbon dioxide emissions to an average of ۱۰۴.۴ grams of carbon dioxide/km in ۲۰۱۵.
Founded in ۱۹۶۶, SAIPA is the second-largest car manufacturer in the Middle East and North Africa, and one of the ۲۰ largest automakers worldwide. With a ۴۰% market share in Iran, the company exports its products to ۲۱ countries, leveraging manufacturing facilities across the four continents.
Source: financialtribune.com
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