Suranjan Das 1

Iran Automotive Industry

Country AnalysisSuranjan Das

Growing Industry in The region

Suranjan Das 2

State of Iranian Auto industry

Iran’s auto sector is the second most active industry of the country, after its oil and gas industry.

Iran has become the largest vehicle producer in the region by producing 46% of all cars produced in the region and its neighboring countries.

During the past decade Iran’s auto industry has had an increasing trend; car production has increased 445% between 1998-2008.

Many new automotive manufacturing companies have been established as well as a relaxation of the Iranian government’s protective policies.

Some sources suggest Iran will emerge as the world’s sixteenth largest automaker by 2012.

In 2007-2008 there were 7.17 people per car produced, while in 2001-2002 this figure was 16.8 people per car production Iran.

The increase in car production is mostly attributed to the strong demand in the market because of population growth, urbanization, Iran’s emerging youth population as well as the increase in presence of women in the society.

Suranjan Das 3

Car Production in Iran

Cars

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

Ja

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Ge

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So

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Ko

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Fra

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Ca

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Au

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alia

Ro

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nia

Slo

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Po

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Fin

lan

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Iran Automotive Industry

Suranjan Das 4

Structure of Iranian Auto industryOEM Presence

Iranian auto industry is government protected, but not at the expense of quality.

Automakers can use premium parts in their production and if parts are not produced domestically, they can import with new and eased tariffs.

Many major foreign companies are currently present in Iran through JVs with domestic car manufacturing companies such as

Iran Khodro-Peugeot, Saipa-Renault, Aidco Iran- Proton of Malaysia, Khodrosazan Bam-Volkswagen etc.

To import cars to Iran, OEMs should at first establish at least one repair shop for each 500 cars and to guarantee to provide spare parts and repairs for ten years.

Six foreign companies have secured the necessary permits to import cars to Iran. They are Toyota, Peugeot, BMW, Mercedes Benz, Volkswagen, Hyundai and Mitsubishi.

Suranjan Das 5

Automotive Growth in IranIran’s car production grew by 688% during past decade

11

9,4

19

27

4,9

85

31

6,3

34

43

9,1

16

51

6,9

30 70

7,7

73

72

5,0

00

80

0,0

00

88

2,0

00

94

0,8

70

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Cars CV

Suranjan Das 6

Automotive Growth Comparison with B-R-I-C countries

725000 882000800000 940870Iran

Brazil

Russia

India

China

4% 14.7% 7%

10.27% 9.4% 14%

16.5%16.3%

6.78%

70% 22% 5.5%

10.3% 10.25% 6.7%

2006 2007 20082005

Suranjan Das 7

OEM Projected Growth

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

500000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Brillance

Changan

Cherry

Lifan

Daimler

Fiat

GAZ

Hafei Motor

Hyundai-Kia

Iranian

Isuzu Motors

Mazda

Mitsubishi

Proton

PSA

Renault-Nissan

Ssangyoung

Suzuki

VW

Source: JD Power Q3 2009

Suranjan Das 8

In the race in Iran

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

500000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Hyundai-Kia Iranian PSA Renault-Nissan

Source: JD Power Q3 2009

Apr-09Logan Pickup

Iran KhodroSaipa

Apr-09Nissan TeanaPar Khodro

Jul-10Nissan QashqaiIran Khodro

Jan-11Renault MeganePar Khodro

Apr-13LoganIran KhodroSaipa

Oct-13Dacia SanderoIran KhodroSaipa

Suranjan Das 9

How the winners are positioned

0

200000

400000

600000

800000

1000000

1200000

1400000

16000002

00

6

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

Hyundai-Kia Iranian PSA Renault-Nissan

98%97%

96%94% 87% 81%

79%

77% 74%71%

70%

Suranjan Das 10

Hyundai-Kia in Iran

SOP Model Name Code Platform Plant

Jan-98 Kia Pride Y Y (Hyundai) Saipa

Apr-02 Hyundai Chorus Other (Hyundai) Iran Khodro

Apr-04 Kia Pride Y Y (Hyundai) Pars Khodro

Sep-04 Hyundai Verna LC Verna 1 Kerman Motor

Jul-05 Kia Rio B-III Rio 1 Saipa

Apr-06 Hyundai Avante HD HD 1 Kerman Motor

Apr-09 Hyundai Verna MC TC 1 Kerman Motor

Apr-09 Kia Rio TC TC 1 Saipa

Jul-10 Hyundai i10 PA PA 1 Kerman Motor

Jul-13 Hyundai Avante HD(ng) HD 2 Kerman Motor

Oct-13 Hyundai i10 PA(ng) PA 2 Kerman Motor

Suranjan Das 11

Renault-Nissan In IranSOP Model Name Code Platform Plant

Apr-02 Nissan Cefiro PQ2 PQ 2 Pars Khodro

Apr-02 Nissan Pickup D21 PU 1 Pars Khodro

Apr-02 Nissan Saipa 24 Other (Ren-Niss) Zamyad

Dec-02 Nissan Roniz Other (Ren-Niss) Pars Khodro

Jan-07 DaciaLogan X90 P1 (Ren-Niss) 1 Saipa

Feb-07 Dacia Logan X90 P1 (Ren-Niss) 1 Iran Khodro

Jan-08 Renault Megane X84 P3 1 Pars Khodro

Apr-09 Dacia Logan Pickup U90 P1 (Ren-Niss) 1 Iran Khodro

Apr-09 Dacia Logan Pickup U90 P1 (Ren-Niss) 1 Saipa

Apr-09 Nissan Teana L42F P5 2 Pars Khodro

Jul-10 Nissan Qashqai P32L P3 1 Iran Khodro

Jan-11 Renault Megane W95 P3 2 Pars Khodro

Apr-13 Dacia Logan X90(ng) P1 (Ren-Niss) 2 Iran Khodro

Apr-13 Dacia Logan X90(ng) P1 (Ren-Niss) 2 Saipa

Oct-13 Dacia Sandero B52 P1 (Ren-Niss) 2 Iran Khodro

Oct-13 Dacia Sandero B52 P1 (Ren-Niss) 2 Saipa

Oct-13 Nissan Qashqai P32L(ng) P3 2 Iran Khodro

Suranjan Das 12

PSA in Iran

SOP Model Name Code Platform Plant

Jan-98 Peugeot 405 D50/SR 405 Iran Khodro

May-98 Peugeot 405 RD 405 Iran Khodro

Sep-99 Peugeot Pars Other (PSA) Iran Khodro

May-01 Peugeot 206 T1 PF1 1 Iran Khodro

Jul-01 Citroen Xantia X1 Xantia Saipa

Apr-08 Peugeot 407 D2 PF3 1 Iran Khodro

Jan-10 Citroen C4 B5 PF2 1 Saipa

May-10 Peugeot 207 A7 PF1 2 Iran Khodro

Oct-12 Citroen C4 B7 PF2 2 Saipa

Apr-13 Citroen M4 1 M3/M4 1 Iran Khodro

Apr-13 Peugeot M3 1 M3/M4 1 Iran Khodro

Suranjan Das 13

The Minority Players

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

200000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Changan Cherry Fiat Proton

Source: JD Power Q3 2009

Suranjan Das 14

The Minority Story

SOP Model Name Code Platform Plant

Chagan

Apr-09 Chagan Benben CV6 Chana Mini Car 1 Pars Khodro

CherryFeb-05 Cherry QQ A15 A 1 Kerman Motor

Mar-07 Cherry QQ A15 A 1 Iran Khodro

Jul-10 Cherry Fengyun 2 A 2 Iran Khodro

FiatMay-04 Fiat Daily L 1 Iveco LCV Zamyad

Apr-09 Fiat Palio 178/N5 178 Bonyan Auto

Oct-10 Fiat Strada 178/N5(ng) Small-Range 2 Bonyan Auto

Apr-11 Fiat Doblo 223(ng) Small-Range 2 Bonyan Auto

ProtonJun-03 Proton Wira M41/44 Old L Zagros Khodro

Jul-11 Proton IKV Iran Various Iran Khodro

Suranjan Das 15

Major Auto Manufacturers and Assemblers in Iran

Iran Khodro Renault

Nissan PSA Cherry Mazda Daimler Hyundai GAZ Proton Hafei Suzuki Own Brand

Saipa PSA Reanult-

Nissan Hyundai Saipa

Iran Khodro Renault

Nissan PSA Cherry Mazda Daimler Hyundai GAZ Proton Hafei Suzuki Own Brand

Saipa PSA Reanult-

Nissan Hyundai Saipa

Bahman group Isuzu Karvan Mitshubishi Mazda

Bonyan Auto Fiat Saangyoung

Dheer Khodro Great Wall

Kerman Motor Cherry Lifan Hyundai VW

Maad khodro Zhonghua

Bahman group Isuzu Karvan Mitshubishi Mazda

Bonyan Auto Fiat Saangyoung

Dheer Khodro Great Wall

Kerman Motor Cherry Lifan Hyundai VW

Maad khodro Zhonghua

Pars Khodro Chana Kia Renault-

Nissan PK Serenza Sepand

Tolidi Moratab Pajan Saangyoung

Zagros Khodro Proton

Zamyad Fiat-Iveco Renault-

Nissan Zarrin Kodro

Pars Khodro Chana Kia Renault-

Nissan PK Serenza Sepand

Tolidi Moratab Pajan Saangyoung

Zagros Khodro Proton

Zamyad Fiat-Iveco Renault-

Nissan Zarrin Kodro

Suranjan Das 16

Home Grown OEMs - Iran Khodro

Iran’s National Car

Samand Soren's Iran-made hybrid engine

PSA

Suzuki

Hafei

Proton

GAZ Hyundai

Daimler

Mazda

OWN

Cherry

Renault-Nissan

IranKhodro

Suranjan Das 17

Iran Khodro.….1

OEM Model Name Code Platform SOP

Chery Chery QQ A15 A 1 Mar-07

Chery Chery Fengyun 2 A 2 Jul-10

PSA Citroen M4 1 M3/M4 1 Apr-13

Renault-Nissan Dacia Logan X90 P1 (Ren-Niss) 1 Feb-07

Renault-Nissan Dacia Logan X90(ng) P1 (Ren-Niss) 2 Apr-13

Renault-Nissan Dacia Logan Pickup U90 P1 (Ren-Niss) 1 Apr-09

Renault-Nissan Dacia Sandero B52 P1 (Ren-Niss) 2 Oct-13

GAZ GAZ Gazella (ng) Other (Europe) Oct-09

Hyundai Hyundai Chorus Other (Hyundai) Apr-02

Daimler Mercedes-Benz Sprinter L T1N T1 1 Dec-04

Suranjan Das 18

Iran Khodro…..2

OEM Model Name Code Platform SOP

Daimler Mercedes-Benz E-Class W211 W211 Mar-07

Daimler Mercedes-Benz E-Class W212 W212 Apr-10

Mazda Mazda Mazda3/Axela J68A C1 MCA 1 Jul-11

Renault-Nissan Nissan Qashqai P32L P3 1 Jul-10

Renault-Nissan Nissan Qashqai P32L(ng) P3 2 Oct-13

PSA Peugeot 206 T1 PF1 1 May-01

PSA Peugeot 207 A7 PF1 2 May-10

PSA Peugeot 405 D50/SR 405 Jan-98

PSA Peugeot 405 RD 405 May-98

PSA Peugeot 407 D2 PF3 1 Apr-08

Suranjan Das 19

Iran Khodro…..3

OEM Model Name Code Platform SOP

PSA Peugeot M3 1 M3/M4 1 Apr-13

Iranian Manufacturers Peugeot Pickup Other (PSA) Jan-98

PSA Peugeot Pars Other (PSA) Sep-99

Proton Proton IKV Iran Various Jul-11

IKCO Samand (Iran) Samand Iran Various Dec-00

IKCO Iran Khodro Runna Iran Various Jan-10

Hafei Motor Hafei Lobo Alto 1 Apr-09

Suzuki Suzuki Escudo JL3 Theta 1 Mar-07

Suzuki Suzuki Escudo 4 Theta Epsilon 1 Apr-12

Suranjan Das 20

Home Grown OEMs - Kerman Motors

Lifan

VW

Hyundai

Cherry

KermanMotor

Suranjan Das 21

Kerman Motors

OEM Model Code NamePlatfor

mSOP

Chery QQ A15 Chery Qiyun A15 A 1 Feb-05

Hyundai Verna LC Hyundai Verna LC Verna 1 Sep-04

Hyundai Verna MC Hyundai Verna MC TC 1 Apr-09

Hyundai Avante HD Hyundai Avante HD HD 1 Apr-06

Hyundai Avante HD(ng) Hyundai Avante HD(ng) HD 2 Jul-13

Hyundai i10 PA Hyundai i10 PA PA 1 Jul-10

Hyundai i10 PA(ng) Hyundai i10 PA(ng) PA 2 Oct-13

Lifan 520 LF7160 Lifan 520 LF7160 Car-1 Apr-08

VW Gol AB9 VW Gol AB9 AB (VW) Mar-05

VW Gol PQ24 VW Gol PQ24 PQ24 Apr-09

Suranjan Das 22

Home Grown OEMs - SAIPA GroupS

AIP

A(F

ou

nd

ed

: 1

96

6)

SA

IPA

(Fo

un

de

d:

19

66

) Saipa Diesel(Founded:1966)

Saipa Diesel(Founded:1966)

Par Khodro(Founded: 1967)

(51%)

Par Khodro(Founded: 1967)

(51%)

ZamyadZamyad

Trucks : 20,000Trailers & truck bodies: 6,000Trucks : 20,000Trailers & truck bodies: 6,000

Fiat (Iveco LCV)Renault-Nissan (Pickup)Fiat (Iveco LCV)Renault-Nissan (Pickup)

HyundaiRenault-NissanChanganSepand

HyundaiRenault-NissanChanganSepand

Saipa (Founded:1966)

Saipa (Founded:1966)

PSA: Xantia; C4Renault-Nissan: Logan; Logan pickupHyundai/Kia: Rio; PrideKarvan: VanSapia: Miniator

PSA: Xantia; C4Renault-Nissan: Logan; Logan pickupHyundai/Kia: Rio; PrideKarvan: VanSapia: Miniator

Suranjan Das 23

SAIPA GroupSaipa Subsidiaries

Pars Khodro Passenger car

ZamyadCommercial

Vehicle

Saipa DieselCommercial

Vehicle

Mega Motor Power Train

Heavy Dies Dies

Saipa Azin Seat

Indamin Shock Absorber

Plasco Kar Plastic Parts

Malleable Casting Parts

Steel Ring Steel Wheel

Shisheh Nashkan Glass

Shisheh Imeni Glass

SazegostarCoordination of suppliers

Reserch & Innovation

Design

Saipa Yadak After sale service

 Rayan Saipa  Finance

Saipa Press Pressing

Saico Quality control

Aetesco Engineering

Expansion of Engineers

Project Manager

Vehicle Engineers Consulting

AbzaralatTools & Engineering

Saipa Sport Culture & Sport

Suranjan Das 24

Saipa

OEM Model Code Name Platform SOPIranian

ManufacturersLight Truck Badsan Light Truck Iran Various

May-02

PSA Xantia X1 Citroen Xantia X1 Xantia Jul-01

PSA C4 B5 Citroen C4 B5 PF2 1 Jan-10

PSA C4 B7 Citroen C4 B7 PF2 2 Oct-12

Renault-Nissan Logan X90 Dacia Logan L90P1 (Ren-Niss)

1Jan-07

Renault-Nissan LoganX90(ng

)Dacia Logan L52

P1 (Ren-Niss) 2

Apr-13

Renault-NissanLogan

PickupU90

Dacia Logan Pickup U90

P1 (Ren-Niss) 1

Apr-09

Renault-Nissan Sandero B52 Dacia Sandero B52P1 (Ren-Niss)

2Oct-13

Hyundai Kia-Rio B-III Kia Rio B-III Rio 1 Jul-05

Hyundai Kia-Rio TC Kia Rio TC TC 1 Apr-09

Hyundai Kia-Pride Y Kia Pride Y Y (Hyundai) Jan-98

Iranian Manufacturers

Van Karvan Van Iran VariousAug-

01

Iranian Manufacturers

Miniator Saipa Miniator Iran Various Apr-09

Suranjan Das 25

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The author can be contacted at das_suranjan@yahoo.com