Automotive

"Swedish mechanical components and sub-systems manufacturer Leax Group says it is eyeing Iran for potential major new business. Leax Group says the decision to approach the Iranian market was adopted after a recent visit to the country by its top directors that was organized by Scandinavian automotive supplier association, FKG. 'Iran used to be a very good market for Volvo and Scania and we are a major supplier to the truck industry,' Leax Group President and CEO Roger Berggren told Just Auto news website... Leax chief said he had several business meetings with local players such as Iran Khodro Industrial Group (IKCO) and SAIPA during his stay in Tehran. 'We [also] met some tractor manufacturers and we can see the technology level is at least ten years behind - they want new technology,' said Berggren." (Press TV, "Sweden’s Leax eyeing Iran’s auto market," 10/17/15) 

Scandinavian automotive supplier association, FKG's decision to lead a component delegation to Tehran has been swiftly echoed by Sweden's Enterprise Ministry setting up a permanent office in the Iranian capital.

FKG has been a strong advocate of reopening business ties with Iran and its visit last year has now been reinforced by Sweden establishing a Tehran office ahead of the widely-anticipated and imminent lifting of sanctions against the country, which could see a flood of automotive companies start to enter a territory once formerly off-limits for most Western businesses. (January 2016)

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"Telephone enquiries from Iranian automotive companies wanting to undertake business with Scandinavian suppliers have already started to pour into Sweden following this week's historic nuclear facilities inspection deal with Tehran. The agreement thrashed out in Vienna comes laced with significant caveats surrounding whether or not Iran's nuclear programme is designed solely for domestic energy use and not destined for uranium enrichment for ultimate weapons production, but Scandinavian component body, FKG remains optimistic there is business now to be realised. 

'They [Iran] have a good business with sub-suppliers and they have a similar organisation to us, but they are behind for years,' FKG managing director, Fredrik Sidahl told just-auto from Sweden. 'Their own companies need to very, very quickly come up [to the] same level as the rest of the world. Here is the situation where Swedish and German, whatever, companies, could assist in the name of both quality and business of course. [The telephone started ringing] yesterday. An approach would be to buy certain components for engineering manufacturing and they asked me where suppliers are in Sweden we could talk to.'

The Gothenburg-headquartered supplier chief noted FKG were 'not brokers' and would not organise individual contracts, but put the telephone request to the Scandinavian Iranian Chamber of Commerce, with which for example, it ran the recent visit to Tehran to gauge future business potential. 'We can't believe it - it has finally happened,' said Sidahl. 'We have to squeeze our arms [pinch ourselves]. If you see internal Iran, they now [have] 900,000 vehicles, which are old type vehicles. Before they were locked in they were 1.6m vehicles per year - there is a gap to close. It is a very good business opportunity for sure. They need to fix the banking system in Iran [however]. They need to line up their banking system outside Iran so you have an exchange rate which is official. Following FKG's visit to Tehran earlier this year, the move will be reciprocated by one in reverse from Iran to Sweden this November, with a trip currently being put together. Lifting of sanctions has also enthused FKG to organise a follow-up supplier visit to Iran taking 'a new troop of companies,' with opportunities for gear and axle-making businesses for example." (Just Auto, "FKG Pinches Itself as Sanctions Lift Sets Phone Ringing," 7/16/15)

"In anticipation of a market expansion following the lifting of sanctions, Indian component makers have lapped up all the space available to them at the Iran automobile parts fair slated for November. Twenty-five component makers have booked space quickly, making it a full house, with some companies unable to find space. 'The Iran deal happened this week, but there was anticipation that there would be a breakthrough because talks were on. The auto industry in Iran and the aftermarket was not showing growth for the last couple of years due to low movement of goods. Once sanctions are lifted, original equipment manufacturers from markets like Europe will rush to Iran. India already enjoys an image of a quality supplier with such companies. We hope to expand exports,' said Rajinder Kakroo, general manager in charge of exports at Shriram Pistons." (Business Standard, "Indian auto component makers bet big on Iran," 7/17/15)

Balatacilar's website lists Iran as an export destination for their products.

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"Turkish friction materials producer Balatacilar Balatacilik Sanayi ve Ticaret [BIST:BALAT] said its unit Azim Lent-e has received authorisation to make a $1.1 million (923,000 euro) investment in Iran. The investment authorisation was given by Iran’s economy ministry, Balatacilar said in a bourse filing on Friday. The company did not disclose details about the investment." (SeeNews, "Turkey's Baltacilar Unit gets Green Light to Make Investment in Iran," 6/5/15)

As of August 27, 2019, Brilliance China Automotive is listed on the Illinois Investment Policy Board list of Iran restricted companies.

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November 2017 report - The major players of the Iranian automotive market are Renault-Nissan Alliance, Brilliance Automobile Group, Chery Automobile, Hyundai Kia Automotive Group, Iran Khodro (IKCO), Lifan Industry (Group), PSA, SAIPA Group, Toyota Group, VW Group, and Great Wall Motor Company Ltd. (GWM).

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"Managing Director of SAIPA auto manufacturing company said with regard to the existence of proper infrastructures in the country the government has put support for foreign investment on its agenda. Saeed Madani, speaking at the second International Conference on Auto Industry, further remarked that SAIPA auto manufacturing group is capable of manufacturing 945 thousand vehicles in the country plus 46 thousand in foreign sites such as Syria, Iraq, Venezuela and Sudan... He said negotiations have been held with Volvo and expressed hope that manufacture of this brand will commence jointly, adding that at present SAIPA has joint cooperation with Renault, Nissan, Kia, Brilliance..." (IRNA, "Support for Foreign Investment in Auto Manufacturing Industry," 12/1/14)

FAW participated in the 16th International Exhibition of Transportation Urban Services & Related Industries (“ITUF”), which took place at the Tehran International Permanent Fairground from January 2-5, 2019. (ITUF 2019, “Exhibition Profile”).

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FAW itself maintains an Iranian webpage, which lists the Bahman Group, Bahman Motor, and Siba Motors as partners.

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"This is the second local deal for FAW with Bahman which produced the larger Besturn B50F model with the company." (April 2017)

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FAW maintains a presence in the Iranian market through its relationship with the Bahman Group and Bahman Group subsidiaries.  Bahman Diesel, a subsidiary of the Bahman Group, displays images of FAW trucks on its webpage.  (Bahman Leasing Website, “Homepage”).  

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Similarly, Siba Motors, another subsidiary of the Bahman Group, states, “Siba Motor is currently the exclusive agent of FAW which is the first and greatest Chinese automobile producer.”  (Bahman website, “Siba Motor”).

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FAW itself maintains an Iranian webpage, which lists the Bahman Group, Bahman Motor, and Siba Motors as partners.  (FAW in Iran Website, “Iranian Partners.”). 

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Faw is listed as a participating company at the 14^th International Exhibition of Transportation & Urban Services & Related Industries which takes place October 27-30^th, 2016 in Tehran Iran. (Participating International Companies)  

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"The Second Iranian Auto Industry International Conference 2014, held in Tehran on December 1, was attended by representatives of over 30 countries' automobile and auto spare parts production companies and ambassadors of 17 states to Iran... Some of the foreign managers, experts and officials present at the confab included... Deputy of FAW Group Lee Baoquan..." (Mehr News, "Pakistan Resumes Crude Oil Import from Iran," 12/10/14)

"Last week, Qorbani announced that Benz, Volkswagen, Volvo, Fiat, Rover, Skoda, Renault, Peugeot, Kia and Toyota would take part in the Iranian auto expo, adding that the US car-manufacturers would also join the event. 'In case of desirable conditions, General Motors and Ford companies will also attend the event.' He continued that some leading car parts makers, including Siemens, FORD Mendo, Busch, FRW and ACI would attend the gathering. The event will start work on December 10." (Fars News, "55 Giant Int'l Carmakers, Part-Makers to Participate in Iranian Auto Expo," 11/2/14)

"Volkswagen Group’s Czech brand, Skoda, will produce a low-cost car for emerging markets like Iran by 2020. The news about the push into the Iranian market comes despite the collapse of cooperation talks with India’s Tata Motors, where VW was previously focusing efforts, according to Auto News Europe." (August 27, 2017)

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"In addition, Skoda Auto, the Czech-based VW subsidiary has been given a license. Their local retailer is IBG Motor. They will be importing two sedans, including the Superb and Octavia models. The new import regulations are in line with the Rouhani administration’s renewed efforts in prioritizing car imports." (Financial Tribune, "Industry Ministry Resumes Car Import Registration," 1/5/2017).

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"Skoda, Volkswagen's (VW) mass-market brand, will start deliveries in Iran, South Korea and Singapore next year and will take time until the end of 2017 or later to decide whether to enter the United States, Skoda's chief executive, Bernhard Maier, said... Skoda will start importing fully built cars to Iran sometime next year and has signed preliminary accords with local partners to prepare partial CKD production in the country, the CEO said." (Reuters, "VW's Skoda to ponder U.S. production amid market push," 9/30/2016).

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“Volkswagen and its Škoda brand are looking at entering Iran following the country's deal with the West to end sanctions, in a move that could cut their dependence on volatile Chinese and Brazilian markets and challenge French rivals.” (Reuters, “Volkswagen and Škoda look into Iran market entry,” 9/16/2015).

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"Last week, Qorbani announced that Benz, Volkswagen, Volvo, Fiat, Rover, Skoda, Renault, Peugeot, Kia and Toyota would take part in the Iranian auto expo, adding that the US car-manufacturers would also join the event. 'In case of desirable conditions, General Motors and Ford companies will also attend the event.' He continued that some leading car parts makers, including Siemens, FORD Mendo, Busch, FRW and ACI would attend the gathering. The event will start work on December 10." (Fars News, "55 Giant Int'l Carmakers, Part-Makers to Participate in Iranian Auto Expo," 11/2/14)

"The first unit S3 rolled off the product line in Iran, JAC starts the new journey in the Persian Gulf...Recently, the first unit S3 rolled off production line in Iran, which makes a foundation for batch-type production in the future and satisfies customers'demand for high-quality vehicles."  (September 2017) 

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Lists a location in Iran. 

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JAC Motors is listed as a participating company at the 14^th International Exhibition of Transportation & Urban Services & Related Industries which takes place October 27-30^th, 2016 in Tehran Iran. (Participating International Companies)  

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"Chinese state-owned automobile and commercial vehicle manufacturer JAC Motors is negotiating with Iran's Kerman Khodro car manufacturing group to produce J2 and P1 cars in Iran. JAC vice chairman said the company exported over 8,000 cars to Iran in the first six months of the current year, Iran's Fars news agency reported on October 18.He said Iran is one of the main markets for JAC products. The Iranian Auto Parts Manufacturers Union has proposed a plan to Iran's industry ministry according to which imports of car from countries which imposed sanctions against Iran's car industry will be banned". (Trend AZ, "Chinese carmaker negotiating to launch assembly lines in Iran," 10/18/14)

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May 2017 - "Automotive giant Iran Khodro has imported several units of the S30 sedan produced by Chinese Dongfeng Motor Corporation, as part of a test drive."
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“Iranian carmaker, Iran Khodro, will manufacture new cars in cooperation with Chinese state-owned automobile manufacturer Dongfeng Motor Corporation. Iran Khodro CEO Hashem Yekkeh Zare' said that the share of Chinese partners will not be more than 10 percent in future joint ventures, the Tasnim news agency reported on July 23. The Iranian carmaker plans to produce 2700 cars in the current Iranian year, which ends in March 2015, he added. The company is also planning to boost cooperation with Peugeot and find a non-French renowned international partner, as well, he noted. On May 5, Yekkeh Zare' said Peugeot should end its assembling works and focus on manufacturing products jointly with the Iranian company." (Trend, "Iranian carmaker to unveil new products with Chinese partner," 7/23/14)