Iran’s largest automaker, Iran Khodro Industrial Group (IKCO), has unveiled the latest model of the Rira crossover at its factory in western Tehran. During the presentation, the company’s CEO, Mehdi Khatibi, announced plans to expand into Russia as early as 2022, reported International Business Times edition.
“We will pay special attention to the Russian market and are considering partnering with Russian investors. “Negotiations with Moscow went well,” said Mehdi Khatibi.
The senior executive described the Russian market as one of the most important markets for the Iranian producer.
Khatibi said that automobile exports to Russia are scheduled to begin as early as 2022.
According to Iran’s vice president, Khodro Kianush Pourmojib, Russia should become the largest export market in terms of volume of cars sold. The automaker plans to produce more than 500,000 cars per year and also to increase its sales in other markets to 100,000 units within three years. Annual against 20 thousand units available.
Persian horses
The Iranian Khodro brand was already on the Russian market – with the Samand sedan, built on the basis of the Peugeot 405 in 2006-2009. Then the model cost about 11 thousand dollars – much more expensive than Renault Logan.
Over the years, 12,000 cars have been sold in the Russian Federation, but deliveries have been restricted due to the introduction of Euro-4 standards and economic sanctions against Iran.
Clarifies “auto-review”. In domestic classifications, many advertisements were published for the sale of 16-year-old sedans, the average price of which was 150 thousand rubles.
Iranians produce converted Peugeot cars under their own brands, as well as crossovers of Chinese brands Haima and Dongfeng. Cars on the Peugeot 405 platform, including the Samand sedan, were produced for more than 30 years, until 2019, when it was decided to abandon the outdated “car”.
Now Iran Khodro is preparing to launch the Rira model,
referred to as the “first national parade” by local media.
It is built on a modified IKP1 platform – a localized platform from the French concern PSA Peugeot Citroen, used in Peugeot 208, 508 and 2008, as well as in Citroen C-Elysee and other models.
The front-wheel drive Rira crossover will receive 1.6-liter engines (113 hp naturally aspirated and 168 hp turbocharged), powered by a 6-band “automatic”. According to the manufacturer’s CEO, the car will be launched at a price of 600 million Iranian reais.
this is about 875 thousand rubles at the current exchange rate.
Another innovation that the Iranians have been selling since 2021 is built on the same platform – the Tara compact sedan, a refreshed version of the Peugeot 301 model familiar to Russians since 2012.
Translated into Russian currency, Tara costs about 1 million rubles in the local market. Iran Khodro, along with other models, brought this car to Moscow for last year’s Interauto show, but the topic did not go beyond the presentation.
Are the plans realistic?
Iran Khodro will have no problem getting the car delivered this year and getting the Vehicle Type Approval (OTTA) to sell the car in the country in just three to four months, trusts an independent sales consultant, auto industry Sergey Burgazliev.
“Over the last 4-5 years, Iran Khodro has quite successfully mastered the production of components and the integration of components into cars.
“They are making significant improvements in cars that distance themselves from horse carriages,” he said.
– Notes of Burgazliev in an interview with socialbites.ca
The source warns that Iranian cars imported into the Russian Federation will be significantly more expensive than in the domestic market, due to VAT, excise taxes that legal entities must pay, and a recycling fee. If Iran decides to assemble cars in Russia, it will be able to receive state support and compensation under a private investment contract (SPIC) – this option may be the most attractive for the Iranian company, said Iran’s Khodro.
“If they come to Russia as part of a structure to create a joint venture or buy a Russian asset, the government supports them, a very serious player emerges. Currently, there are industrial plants where it is possible to produce cars in a full cycle, much more than the number of applicants for the purchase of cars, ”says Burgazliev.
A comprehensive list of such assets is Derways (Cherkessk), Stavropol Auto, a subsidiary of the GAZ Group (where Volkswagen and Skoda are assembled in Nizhny Novgorod),
Considering the long-term interaction of the Iranians with Peugeot-Citroen, cooperation with the Stellantis concern is also possible.,
like an expert.
To sell cars in Russia, an Iranian manufacturer must create its own distribution and dealership structure, as it is not possible to adapt the existing system (Europe, America, Korea and China) to Iran. Iran Business Council
“A serious problem in our opinion is almost protective taxes on imports of cars into Russia.
– therefore, large sales volumes are possible only with localization of assembly, ”says Obydenov in an interview with socialbites.ca.
In terms of logistics, there are currently three routes between Iran and Russia – rail, road and sea. All of them are working, so he is sure that there will be no problems with transportation in this direction.
To socialbites.ca in the Avtodom group of companies, whose dealer portfolio includes 13 European and Japanese car and motorcycle brands, now most of the cars that come to Russia through parallel imports belong to the premium segment, as they are subject to maximum marginality.
“Under current conditions, Iran Khodro has every chance to successfully enter the Russian car market. In addition, there is a serious shortage of European brand cars in the automobile market, which can partially fill the Iranian brand,” he said.