Iran to supply autos in Venezuela from March

Business Materials 6 December 2006 18:26 (UTC +04:00)

(IranMania) - Managing director of Auto Industry Development Company, Reza Danesh-Fahim Tuesday announced that Iranian-made cars including four and two brands of Samand sedan and Saipa 141 respectively will be supplied in the Venezuelan market from March 2007, IRNA reported.

Speaking at a news conference, he added that Iranian and Venezuelan officials entered into negotiations on the construction of an Iranian car manufacturing factory in Venezuela in January 2005, and noted, President Hugo Chavez and Iran's Minister of Industries and Mines Ali-Reza Tahmasbi recently participated in the inaugural ceremony of the factory, reports Trend.

Pointing to the car factory of Venirauto as the first joint venture between Iran Khodro Company (IKCO) and Saipa in a foreign country, he said that the factory can manufacture 26,500 autos including 16,500 Samand sedans and 1,000 Saipa 141 car during a three-year period.

Iran has got some 51% share of the factory and the rest belongs to Venezuela, he said, noting that the total investment will be $ 90 mln of which Iran has so far invested $ 11 mln in the giant project.

Referring to the prices of Iranian autos in the country, he said that Samand EL, LX, Standard and Saipa 141 will be sold at 10, 12, 14 and 7.5 thousand dollars respectively.

He stipulated that the autos will be manufactured in SKD process, and added, during a three-year period, some 35% of the cars will be domestically produced to expand exemptions for Iran's auto industry.

Touching on Venezuelan spare part manufacturers' weakness in this respect, he noted, "We plans to provide Iranian producers with more opportunities to utilize their optimum capacities."

Venirauto will become Iran's auto export base in Latin America, he said, adding that the company will supply 10,000 Iranian-made cars in Venezuelan market in 2007.

Iran plans to establish a factory to manufacture van, truck and bus in the Latin American country, he said, adding, it will earn Iran with handful profits.