socialbites.ca reports that Best Motors LLC, the official distributor of the Iranian carmaker SAIPA in Russia, which announced plans to introduce the brand to the Russian market in spring 2023, is moving toward liquidation. Alexander Stepanov, the general director of Best Motors, told the publication that he and his partners chose to halt SAIPA imports due to shifts in Russia’s economic landscape.
“The situation has shifted. At that time the brand looked attractive in terms of price and everything else. Then it stopped being commercially viable, that is all,” Stepanov explained.
He noted that Best Motors realized it could not sell SAIPA vehicles at the originally intended prices. In March the company announced deliveries to Russia of the first SAIPA Saina and Shahin sedans, along with Quik hatchbacks. The initial sales price range was planned at 1 to 1.7 million rubles.
In April the company published the specifications and equipment for the cars on its site. Yet sales of the Iranian models never began, and the Russian SAIPA website stopped functioning.
Stepanov added that price pressures affected the lineup as well. He stated that prices for all models rose due to several factors, from the dollar exchange rate to a recycling fee. He argued that the price of an Iranian car should be 20 to 30 percent lower than a comparable Chinese model.
Experts predicted difficulties ahead
Independent automotive industry consultant Sergei Burgazliev believes SAIPA is unlikely to establish a meaningful presence in Russia. He notes SAIPA’s vehicles compete directly with state-backed AvtoVAZ, which shapes market dynamics in favor of domestic brands.
“They might run a test here, but price competition with Lada is a real hurdle. A prudent approach would have included political support to back exports, which did not happen,” Burgazliev told socialbites.ca.
According to him, Iranian management would first assess Russia’s potential, noting the market sells about 1.5 to 2 thousand cars annually. He adds that establishing a dealer network and strong marketing would require substantial investment, a factor that likely deterred further action.
“There is a sense that local automakers preferred SAIPA not to enter. The Iranians realized that building a network would demand heavy investments and decided the effort might not pay off,” Burgazliev concluded.
Officials expected SAIPA to compete with the Lada Vesta on price, but the higher taxes and duties in Russia complicate that comparison. Igor Morzharetto, a partner at Autostat, remains skeptical about SAIPA’s future in Russia.
“We were promised much, yet early-year results show almost no SAIPA presence. Fewer than a hundred Iranian Khodro cars have been sold in Russia since the start of the year while SAIPA itself has not appeared in the market. It is unclear how aftersales and winter exposure to reagents will be handled,” Morzharetto told socialbites.ca. He added that in Russia Iranian cars have faced a wait-and-see sentiment.
Morzharetto also observed that Chinese makers can still undercut Russian prices, while SAIPA could attract buyers with features that AvtoVAZ cannot offer due to sanctions, such as automatic transmissions, ABS, ESP, and airbags.
Belarusian venture learns the same lessons
In Belarus, the Lucky Care company planned to import SAIPA vehicles and expressed hope to promote the brand. However, it reported delays in Vehicle Type Approval certification, extending the process significantly.
Lucky Care general director Sergei Vachinsky told socialbites.ca that the OTTS certification was postponed, and six months elapsed while vehicles remained at the testing site. Certification has been pushed to 2024, and Burgazliev believes SAIPA could threaten AvtoVAZ’s sales if it proceeds with market entry.
Vachinsky remains optimistic that certification documents will be completed soon and that a first batch could reach Belarus, potentially accompanied by local assembly. This would depend on dealers signaling demand for SAIPA supply volumes.
In summary, analysts in both Russia and Belarus view SAIPA as a potential disruptor only if substantial network investments and political or financial support align. Without those elements, SAIPA faces a challenging path in markets where domestic producers and sanctions strongly influence pricing, service networks, and consumer confidence. Market observers also warn that the experience could impact SAIPA’s long-term strategy in the region and raise questions about the feasibility of similar launches elsewhere in post-Soviet markets. [Source: socialbites.ca]