Iran: domestic demand for cars is hot as sanctions ease. Best-selling Brands & Model ranking.

Accordingly with data released by I.V.M.A, the Iran Vehicles Manufacturers Association, in November total light passenger vehicles produced and shipped to dealers in Iran were 50.623, up 24.0% from year ago. Year to date figures were 536.655, up 195%.

With Geneva’s agreement to ease sanctions on Iran’s automotive industry in place, Iranian consumers find themselves in the spotlight of international trade talks, after years of life under sanctions that have destroyed their personal finances and isolated them from global markets, Global analysts describe the country as one of the most prospective destinations for automakers looking to invest in new emerging markets, highlighting growing demand as well as domestic production potential. But with purchasing power at a record low and structural barriers still in place, it remains uncertain whether the local consumer – the linchpin of any international cooperation – can live up to the expectations.

The Iranian car market is expected to climb to 1.5 million units per year by the year 2020, according to an October report by the Boston Consulting Group. Even under current economic conditions, this steady demand growth makes Iran the fastest-growing market in the Middle East and North Africa. In addition, foreign exporters looking to set up in the lucrative region may take advantage of the country’s technological expertise, strategic location and low production costs.

Currently, Iran Khodro has the capacity to produce about 1 million units each year, and has a history of manufacturing foreign automobiles. Indeed, we know they have talks in place to expand activities in South America and Africa, despite they would need a strong investment in renovating the too old model’s line up.

“Access to cars is integral to the country’s progress and the people’s prosperity,” Iran’s first vice president Eshagh Jahangiri said in early December, according to a report by the reformist daily Shargh.

Jahangiri emphasized that, after a half a century in operation, the country’s automotive industry holds an integral position in the national economy. Its technological knowhow – a rarity in the MENA region – was effectively financed by local car owners, industry minister Mohammad Reza Nematzadeh continued.

Peugeot and Renault are under advanced talk to define a new partnership with the local State owned firm, Iran Khodro which in the past was a Peugeot partner.

Another foreign automaker that may be vying for a slice of the Iranian market is General Motors. According to a report last month by the French daily Le Figaro, the recently bailed out US company has been courting Iran Khodro for the past two years, though GM representatives subsequently denied the claim. While it hasn’t operated in the country for over three decades, the automaker may be hoping to capitalize on its historic presence in the market as well as low fuel costs and the local recognition of American brands.

In the next table, we report Top 10 Brand ranking, in production, by last month position:

Rank Nov

Rank Oct

Rank YTD

Brand

Nov

YTD 2013

FY 2012

I Half 2013

Q3 2013

Oct 2013

Nov 2013

YTD 2013

1

2

2

Peugeot

19.547

157.517

3,2%

24,5%

33,3%

35,3%

38,6%

29,3%

2

1

1

Saipa

18.431

213.775

4,1%

38,6%

44,3%

37,5%

36,4%

39,8%

3

3

3

Iran Khodro

9.283

89.989

2,4%

16,6%

15,9%

18,4%

18,3%

16,7%

4

5

6

Lifan

1.668

6.168

0,0%

0,8%

0,5%

3,0%

3,3%

1,1%

5

4

5

Chery

912

22.098

0,7%

5,9%

1,7%

3,0%

1,8%

4,1%

6

6

4

Renault

564

43.844

1,4%

12,7%

3,7%

2,6%

1,1%

8,2%

7

12

8

JAC

65

956

0,0%

0,2%

0,3%

0,0%

0,1%

0,2%

8

10

10

Suzuki

48

656

0,0%

0,2%

0,1%

0,0%

0,1%

0,1%

9

8

7

Nissan

40

1.079

0,0%

0,2%

0,2%

0,1%

0,1%

0,2%

10

9

11

Great Wall

33

611

0,0%

0,2%

0,0%

0,0%

0,1%

0,1%

In the table below, the Top 10 Models produced in Iran order for last month data:

Rank Nov

Rank Oct

Rank 2013

Model

Nov

YTD Nov

I Half 2013

Q3 2013

Oct 2013

Nov 2013

YTD 2013

1

1

1

Saipa Pride

15.389

188.326

35,1%

37,6%

32,0%

30,3%

35,0%

2

2

2

Peugeot Pars

11.145

81.373

12,6%

16,5%

18,6%

22,0%

15,1%

3

3

3

Iran Khodro Samand

5.636

65.964

13,1%

10,5%

13,4%

11,1%

12,3%

4

4

4

Peugeot 405

5.608

52.618

8,5%

11,1%

12,1%

11,1%

9,8%

5

6

7

Iran Khodro Runna

3.647

24.025

3,4%

5,4%

5,0%

7,2%

4,5%

6

5

6

Saipa Tiba

3.042

25.449

3,4%

6,7%

5,5%

6,0%

4,7%

7

7

8

Peugeot 206

2.794

23.526

3,5%

5,7%

4,6%

5,5%

4,4%

8

10

15

Lifan X60

1.022

2.040

0,0%

0,0%

1,8%

2,0%

0,4%

9

11

12

Lifan 620

646

4.128

0,8%

0,5%

1,2%

1,3%

0,8%

10

8

5

Renault Tondar 90

564

38.285

11,1%

3,0%

2,5%

1,1%

7,1%

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