Iran's SAIPA carmaker to produce limited amount of vehicles

Business Materials 27 January 2020 17:08 (UTC +04:00)
Iran's SAIPA carmaker to produce limited amount of vehicles

TEHRAN,Iran, Jan.27


Following the release of remained auto car parts in Iranian customs, local manufacturer - SAIPA Group has announced about the limited production of vehicles, which include Reno SAndro and Pars Tondar models, Trend reports via IRNA.

Iran's biggest auto manufacturers - SAIPA and Iran Khodro are to manufacture some 3,000 vehicles from the Reno family, to fullfill their delayed commitments and provide cars to the previously registered customers .

Meanwhile, there have been efforts to manufacture some spare parts domestically.

Iran's auto market has faced several changes in the current Iranian year (began March, 21.2019). Many have invested money in domestic vehicles due to devaluation of national currency, and this eventually led in increase of car prices.

As a result, major automakers have started to experience problems due to import ban on spare parts.

Iran's giant automakers - Iran Khodro and SAIPA have their share of problems.

Member of Iran's Auto Parts Manufacturers Association Ebrahim Ahmadi previously told Trend that the losses of Iran Khodro Company during the current Iranian year (started March 21,2019) was $1.9 billion.

According to him, the problems of Iran Khodro and SAIPA wont be solved by loans, because "not only they are in debt from previous accounts, but in case of losses they won't be able to get another loan, and would require an order of authority to obtain more credit."

"We hope that auto production will not drop in next Iranian year, but considering the current situation and intense sanctions, the situation is becoming worse with each day," he said referring to daily production of 2,000 to 2,500 cars in the country.