Baku, Azerbaijan, Nov. 18
By Umid Niayesh- Trend:
The new round of cooperation between the Iran Khodro Diesel car manufacturer and the German giant car manufacturer Daimler AG will focus on manufacturing new versions of motors in Iran, Mohammad Hazrati, export manager of the Iran Khodro Diesel told Trend.
Daimler is Iran's traditional partner, he said, adding that Iran Khodro Diesel had started negotiations with the German company and widespread cooperation was expected after sanctions are removed.
Earlier, Hashem Yekeh Zareh, the CEO of Iran Khodro Industrial Group (IKCO), claimed that the German company would purchase 30 percent of Iranian Diesel Engine Manufacturing's (IDEM) shares to produce autos in the city of Tabriz, adding that Mercedes-Benz would sign a 10-year agreement to produce trucks and autobuses in Iran.
Hazrati noted that IDEM and Daimler AG have been partners since 1969; however, this relationship was interrupted when the German company left Iran during the period of sanctions.
The IKCO continues to manufacture previous versions of motors and will continue to support these products, he stated, stressing that joint manufacturing of new versions of motors for commercial cars will become a priority during the post-sanctions period.
Iran's traditional customers, including Saudi Arabia and African countries, are currently interested in buying trucks with the older-style motors, he affirmed.
Hazrati further noted that the manufacture of new versions of these motors had been planned some 4-5 years ago, but these plans had been delayed by sanctions.
He described Azerbaijan's market as suitable for Iran, saying his country had the ability to supply the neighboring country with commercial vehicles, including buses.
He added that the company's exports had now doubled compared to the previous fiscal year (ended March 21).
Responding to a question on how the suspension of sanctions following the Geneva nuclear deal had affected Iran's auto industry, he pointed out that no permanent or major steps had been made during the sanctions period.
"During that period, the Iranian companies resolved their give and take issues with their foreign partners."
Western countries suspended certain sanctions against Iran as the Geneva nuclear deal came into force in January 2014. Iran was permitted to import materials for its auto-manufacturing sector as a result of the nuclear deal implementation, which has led to a sharp increase in the country's auto output.
Hazrati further claimed that the company's main target markets are Northern African countries and Persian Gulf Arab states.
He also underlined that the company currently has no plans to launch joint manufacturing units in foreign countries to produce commercial vehicles and has mainly focused on exports.
"Investment in foreign countries for launching joint factories is not economically justified due to the limited demand for commercial vehicles."
Exports to neighboring countries are a priority for the company, he said, adding that both sides would benefit from the reduced costs.
The 2014 production statistics released by the International Organization of Motor Vehicle Manufacturers (OICA) show that Iran's auto production increased by 46.7 percent in the 12-month period. The figures indicate that Iranian automakers produced 1,090,846 cars and commercial vehicles last year.
Iran's car output reached 555,954 units in the first half of the current year, according to the OICA.
The figures indicating a 13.9 percent increase year on year make Iran the world's 18th largest car manufacturer in the period.
The Islamic Republic manufactured 496,982 sedans and 58,972 commercial vehicles in the first half of 2015.
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