23 Apr 2024
Wednesday 17 August 2016 - 15:55
Story Code : 227378

Iranian carmakers' good fortune unlikely to trickle down

TEHRAN, Iran A majority of car consumers in Iran complain about thelow qualityand high pricesof vehicles produced by local manufacturers, according to a poll conducted by news website Khabar Online. Citing another poll, leading economic newspaper Donya-e Eqtesad reported Aug.11 that more than half of Iranian car consumers think that the vehicles' quality does not justify theirprices.

The two leading Iranian automakersIran Khodro Co. (IKCO) and SAIPA bothsaw a sharp decline in sales last year. The situation began to deteriorateafter a nationwide campaign called oncitizens to boycott new domesticallyproduced cars in protest oftheir low quality. Eventually, the governmentoffered a stimulus package providing loans for potential consumers of Iranian-made cars. The packageboosted sales without manufacturers needing to cut prices.

IKCO and SAIPA recently displayed their new car models in an automotive exhibition in the city of Mashhad, unveiling prices that critics say are still high. IKCO, which signed a 400millioneuro ($446.5 million) joint venture with Peugeot a few months after the nuclear deal'sJanuary 2016 implementation day, announced earlier this month that prices for Peugeot's 208, 2008, 301 and 508 models will range from 500 million rials ($16,000) to 1.8billion rials ($57,900). Meanwhile, SAIPA revealed that prices for its Citroen models C4L, C3, C4 Aircross and C6 will start at 600 million rials ($19,300) and go up to 1.3billion rials ($41,800).

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This article was written by Alireza Ramezani for Al-Monitor on Aug. 16, 2016. Alireza Ramezani earned a master's degree in journalism from Cardiff University in theUK. He has worked for various media organizations and businesses in Iran since 1999.
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