Assignment of the automotive industry to competitors / Will the Iranian automobile factory be transferred to China?
According to Tejarat News, Minister Samat promised that by increasing car production and exports, he could reduce car prices in Iran. But the export markets of Iranian cars are decreasing day by day and people in other countries are not willing to buy Iranian cars.
Earlier, Iraq rejected Iranian cars, saying that Iranian cars did not meet the required standards. Now, the recent accident on Behbahan Road has proved the poor quality of Iranian cars. An accident in which 60 cars collided and 14 people died.
In this airbag accident, no car was opened to prove once again that Iranian cars do not have the necessary quality and standards.
The head of the Iran-Iraq Joint Chamber told Tejarat News: In the recent accident in Khuzestan, 60 cars crashed and no airbag was opened. Events like this accident both worry domestic customers and cause the loss of export markets.
Yahya Al-Ishaq refers to the situation of Iran Khodro’s production line in Iraq and says: “Automakers have upset everyone.” Because their products, despite their high price, do not have the required quality. Car production in Iran is difficult and faces challenges, let alone competitive markets.
Was the car factory in Iraq handed over to China?
Al-Ishaq is referring to the Iranian car production line in Iraq. A production line that was launched in Iraq years ago to export Iranian cars to neighboring countries. But at the same time, Iraqis were worried about buying an Iranian car.
At that time, Mehr News Agency quoted Davood Bonab, Saipa’s Deputy CEO, as saying: “The Iraqi people pride “They consider it a death chariot, and this has caused the two production lines of Iran Khodro and Saipa in Iraq, which were supposed to be launched in March of last year (1992), to be replaced by Chinese cars, despite being equipped.”
In other words, the quality of Iranian cars was not acceptable to Iraq and Iran was forced to assemble a Chinese car in the production line of Iranian cars. Saipa’s CEO had said at the time: “Instead of an Iranian car, a Chinese Lifan will be assembled in the Saipa production line, and Iraqi officials believe that the production of a car with negative publicity in Iran should not be produced in Iraq.”
But has the Iranian car factory in Iraq been handed over to China? Al-Ishaq says: “Iran’s car production plant in Iraq has not been handed over to China yet, but with this low quality and non-compliance with standards, it is possible that the car production line in Iraq will be handed over to the Chinese.” In these circumstances automobile industry Iran must change. From changes in management, after-sales service to production quality and price.
Iran assembles cars in Iraq
What is the status of Iranian car exports to Iraq? Al-Ishaq replied: Some cars, including taxis and trucks, have been exported to Iraq. There is no complete factory in Iraq to say that zero to one hundred cars are produced in this country. Rather, Iran exports parts so that it can assemble cars there.
“Even the assembly of Iranian cars in Iraq is not in a good situation,” he said. This means that even assembled cars may soon lose market share and the industry will be left to competitors.
According to this report, an alarm has been sounded for Iranian carmakers. It seems that the automakers, who all hoped to export parts to Iraq and obtain good foreign exchange resources through this route, are now losing their markets one by one due to non-compliance with quality and standards.
Statistics show that the total export products of the two major automakers in the first nine months of this year were 4,544 units in the form of parts and complete products. But the number of Iranian export cars has decreased.
Foreign customers were afraid of the Iranian car industry
Al-Ishaq said: “Not only the people but also the voice of the officials has come from the low quality and services and the high price of the cars.” Minister Samat recently said that despite the high price of cars, they do not have quality. Both the people and the officials got tired of this low quality of cars. Therefore, fundamental changes must take place in the automotive industry.
Following a chain accident in Behbahan, Sardar Seyed Kamal Hadianfar, the head of Tehran’s traffic police, had previously said: “In this accident, no car was opened in Behbahan Airbag. What car do we have? Why do we produce death chariots? Responsible devices must monitor the quality of vehicles. “Why aren’t the standards met?”
“Years ago, a joint car manufacturing site was established in Alexandria, Iraq,” said Farzad Pilten, director general of the Trade Development Organization’s Arab-African office. “This site has not stopped and is operating, and Iran is producing Pride and Peugeot in Iraq.”
Read more about Pride production in Iraq.